YEREVAN, April 7. / ARKA /. Armenian ministry of finance said today some 160.8 billion Drams of a $500 million stabilization loan that Armenia received in 2009 from Russia, have been spent on improvement of business environment, lending to small and medium companies and implementation of large programs designed to better the operation of key infrastructures.
According to a statement by the ministry of finance, the money was used to finance several business projects which are of key importance for Armenian economy and which gave a strong incentive to economic recovery, helping, particularly, the small and medium-sized businesses to overcome the fallout from the global crisis.
The statement says also part of the loan was used to set up a stabilization fund to provide finance to economy in case of strong need and protect it against negative external shocks.
According to the statement, 85.5 billion Drams of the loan were lent to economy. Of that sum 66.5 billion were lent via banks and other financial institutions; 1.2 billion Drams were invested in SME through universal crediting organizations, 17.8 billion Drams were channeled into companies ensuring the operation of key infrastructures.
Also 4.3 billion Drams were allocated as loans to SME through the national SME Development Center and 15.6 billion Drams were loaned to Arm RosGazporm natural gas operator.
According to the statement, 52.9 billion Drams of the Russian loan were channeled into construction of housing in the earthquake zone, 1.3 billion Drams were loaned to Tamara Fruit company and 1.2 billion Drams were spent to finance a road rehabilitation program.
Armenian received the $500 million loan in June, 2009 as assistance to cushion the effects of the global recession on the domestic economy. The loan was provided at LIBOR interest rate plus 3% and is repayable in 15 years. -0-
