YEREVAN, October 17. / ARKA /. The Armenian government on Thursday decided to grant the Central Bank a 15 million euro budget guarantee for it to meet its commitment to German bank KfW.
In 2012 June the Armenian government and KfW signed a 15 million euro loan agreement to finance an agricultural program’s implementation in Armenia.
The program is aimed at financing small and medium-sized agricultural enterprises. Most of the loan will be used to purchase agricultural machinery and equipment, consolidation of land plots and construction of greenhouses.
In addition to the KfW loan, the Armenian government will provide another $5 million for the program from a German government grant.
According to the agreement, the loan agreement comes into force only after the Armenian government provides a budget guarantee.
According to Article 11 of the ‘Law on Budget System,” the amounts due to non-fulfillment of the guaranteed debt are paid from the contingency fund. M.M.-0-
