YEREVAN, May 26. /ARKA/. Under a housing renovation program, approved today by the Armenian government, citizens will be eligible to low-interest rate loans.

The  Chairman of the  Urban Development Committee Armen Gularyan said the government will subsidize part of loan interests. He added that loans will be available from 17 banks in Armenia.

"The loan repayment period is 7 years and the interest rate for citizens will vary depending on the region: 0% in borderline villages, 2% - in rural communities, 3% - in urban communities  and 5%  in Yerevan", Gularyan said.

He stressed that one of the conditions for granting soft loans is that 30% of the sum should be spent on improving the energy efficiency of housing.

He said the government will control the targeted spending of funds. If misuse of funds is revealed, the government will stop subsidizing and the citizen will be obliged to continue paying the credit with the rate of 14%.

According to him, in order to combat the shadow sector, there is a requirement that 70% of expenditures  made by non-cash method. --0--