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German KfW bank may provide Armenia with 205 million euro loans in next few years to finance a variety of projects

19.03.2015, 18:04
The government of Armenian has okayed today the signing of a draft package deal with the German government-owned KfW bank under which the latter will provide Armenia with 205 million worth loans in the next few years for the implementation of various projects.

German KfW bank may provide Armenia with 205 million euro loans in next few years to finance a variety of projects
YEREVAN, March 19. / ARKA /. The government of Armenian has okayed today the signing of a draft package deal with the German government-owned KfW bank under which the latter will provide Armenia with 205 million worth loans in the next few years for the implementation of various projects.

According to the draft agreement, Armenia will get a 100 million euro to build a transmission line from Armenia to Georgia as part of the "Caucasus Power Line" project.

The loan agreement for this project in the amount of 85.2 million euros was signed with KfW in 2014 December. The KfW loan will be provided in two tranches -75 million and 10.2 million euros. The first is repayable in 15 years with a five-year grace period and the second is provided for a period of 40 years at 0.75% interest rate. This project is expected to enable Armenia and Georgia to integrate their power grids and contribute to their economic development. 

Under the draft package Armenia may also obtain from KfW a 50 million euro loan for management of water resources of the border Akhurian River, a 15 million euro loan for energy-efficient renovation of schools, up to a 20 million euro to enhance efficient use of energy by small and medium-sized businesses and another 20 million euro loan for boosting local real estate market.-0-