YEREVAN, October 27. /ARKA/. The Armenian parliament has ratified today a loan agreement with the International Bank for Reconstruction and Development on additional financing within the framework of Social Investments and Local Development program.
According to Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan, the Armenian side will be provided with a loan in the amount of 17.9 million euros (20 million US dollars) to continue two previous programs of the Territorial Development Fund aimed at the development of social infrastructure in the regions.
“The previous program’s budget was about $30 million, which were used to renovate kindergartens, schools, health care institutions, community centers were built, property for kindergartens and schools was purchased,” Terteryan said.
He said the first tranche in the amount of 6.2 million euros (of which 4.5 million euros are loans) will be used to promote socio-economic development and opportunities in communities, the second component – 16.7 million euros (of which 12.2 million euros are loans) will be used on interregional socio-economic development.
And 2.5 million will be used to provide institutional cooperation and technical assistance to the Fund.
Terteryan described the program as effective, helping the government to develop community infrastructures.
The International Bank for Reconstruction and Development (IBRD) and Development loan of €17.9 million ($ 20 million) has a floating spread and a maturity of 25.5 years with a 14.5-year interest-free period. The Government of Armenia and the beneficiary communities will provide co-financing totaling 7.52 million euros.
The total volume of Armenia’s obligations after its accession to the World Bank in 1922 and to the IBRD in 1993 is approximately $2.4 billion. -0-
