Yerevan /Mediamax/. Minister of Finance of Armenia Tigran Davtyan presented today to the discussion of the parliament the Armenian-Russian intergovernmental agreement on providing Armenia a governmental loan at the volume of $500mln.

The loan is provided for the term of 15 years, with 4 years’ period of grace. The interest rate of the repayment will make LIBOR+3%.

Mediamax reports that “Dashnaktsutiun” MP Ara Nranyan expressed opinion that LIBOR+3% is a high rate and the loan is more of commercial nature than stabilization. To this, Tigran Davtyan stated that in the course of a year the interest payments will make about $20mln, and Armenia possesses the necessary solvency. The Minister of Finance also stated that such loan conditions are considered as being “mild” in the global financial market.

Tigran Davtyan stated that the Russian loan will be reflected in the state budget as additional proceeds. The means will be directed to funding of small and medium enterprises, rehabilitation works in Spitak earthquake zone, as well as for provision of direct credits to backbone companies – Zangezur Copper-Molybdenum Plant, “Nairit” Chemical Plant. 

MPs expressed concern in connection with high interest rates, applied by commercial banks for crediting of small and medium enterprises. Tigran Davtyan noted that the government keeps this issue in the center of its attention and intends to take up measures to realize decrease of interest rates.