YEREVAN, December 17. /ARKA/. On Thursday, Armenia's government gave its approval to signing of a €75-million loan agreement with the French Development Agency.

The government says the money will be spent on improvement of the Vedi Water Reservoir.

«The implementation of the program will mitigate the water-supply problem in Ararat Valley and will allow transition from mechanical irrigation to gravity-flowing irrigation,» the government says in its draft decision.

The loan will be extended for 20 year with a two-year grace period. --0----