YEREVAN, July 19. /ARKA/. Under European Bank for Reconstruction and Development’s (EBRD) new three-year strategy for Armenia, its investments in the local economy in 2012 may amount to 60-80 million euros, head of EBRD Yerevan Office, Valeriu Razlog, said today after EBRD and Armenian Araratbank signed a $7 million loan agreement.
He said EBRD’s new strategy for 2012-2015 was approved by the Board of Directors on May 29, 2012.
Mr. Razlog said Armenia became the first country to achieve financing in local currency under the Bank’s new Early Transition Countries Local Currency Initiative. He said the EBRD is continuing its dialogue with the authorities aimed at the development of local money and capital markets in the country where dollarisation – and with it the foreign exchange risk – surged during the crisis.
“The latest crisis has taught everyone in the world of finances a good lesson. We aim to reduce currency risks both for our partner banks and their clients. The solution to this issue is providing loans in national currencies,” he said.
Razlog also told ARKA that according to preliminary results of the first half, the amount of EBRD financing in Armenia totaled 35 million euros.
Earlier, EBRD director for Turkey, Eastern Europe, Caucasus and Central Asia Olivier Descamps said the new strategy aimed at developing the financial sector and improve access to finance, improving municipal and urban transport infrastructure, developing agribusiness and high value-added, export-oriented industrial companies, improving the regulatory and institutional framework for sustainable energy and increase added value in the mining sector.
The EBRD is one of the largest investors in Armenia. It has been cooperating with Armenian government since 1992. As of March 2012 the EBRD has invested over 516 million euros in 106 financial, corporate, energy and infrastructure programs here. -0-
