YEREVAN, April 19, /ARKA/. The German KfW bank will provide Armenia’s Central Bank with a 20 million euro worth loan as part of Housing Financing Project implemented by the German-Armenian Fund. The agreement was signed today in Yerevan. Central Bank governor Arthur Javadian said the loan is repayable in 10 years with a 3-year grace period. He said the loan will be on-lent within three next years.

In 2006, in response to an invitation issued by the government of Armenia, KfW bank took the role of lead donor in moves to introduce long-term, low-interest mortgages in Armenia. German Financial Cooperation has made available a loan of EUR 12 million and a grant of EUR 1.5 million, making it possible for Armenians to take out long-term loans that will allow them to modernise their homes and buy property.

Arthur Javadian said today the on-lending will start in 3-4 months after all formal procedures are over, including a parliament ratification. He said the loan is provided at market interest rates, but since part is subsidized by the German government, they are preferential being within 3%. He said the interest rate is fixed and not subject to changes. He added also that loan will be on-lent to Armenian commercial banks at 8.25% interest rate, but this may change depending on the market situation.

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Tags: Armenia, GERMAN, LOAN

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