Armenia may reckon on $1.1 billion from Eurasian Economic Union’s anti-crisis fund

25.02.2016 16:08
Armenia may reckon on $1.1 billion from Eurasian Economic Union’s anti-crisis fund

YEREVAN, February 25. /ARKA/. Armenia may reckon on $1.1 billion from the Eurasian Economic Union’s anti-crisis fund, Armenian Deputy Finance Minister and Chief Treasury Secretary Atom Janjughazyan said Wednesday in the National Assembly.

Armenia has its $1 million in the anti-crisis fund, and this share allows the country to borrow $1.1 billion from it.

“Three loans have already been approved for Armenia – a $300-million budgetary support loan for 2015-2017, a $150-million loan for construction of North-South motor road and a $40-million loan for solution of problems in irrigation system,” Janjughazyan said.

He said that Armenia has received only one third of the budgetary support loan so far, and the remaining amount will be provided in 2016 and 2017.

The deputy finance minister stressed that there are also other programs which have already been submitted or will be submitted to the fund.

On November 4, 2015, the Armenian government signed a $300-million loan agreement with the Eurasian Development Bank.

These financial resources are intended for neutralizing possible short-term and mid-term risks in implementation of monetary policy and ensuring a fast economic growth.

The loan was extended for 20 years with a 10-year grace period at 2% annual interest rate.

The anti-crisis fund of the Eurasian Economic Union is a $8.5-billion regional financial mechanism.

It was established in 2009 by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

The fund extends financial loans to governments to support budgets or payment balances of its member countries. The fund’s resources are run by the Eurasian Development Bank, which was established in 2006 by Russia and Kazakhstan. ---0----

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