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GERMANY GIVES CREDIT TO ARMENIA

Economy

In 2003 January accord was reached between Armenian and German governments on financing “Guarantee Fund of Credits” project.

Armenian Finance and Economy Minister Vardan Khachatryan and Claus Glaubit, the head of the Department of Financial and Private Sphere in South Caucasus, Eastern and Central Europe, signed today an agreement, under which German Credit Bank is to provide a grant of 4.345.980 Euro to Armenian government.

The project aims at providing guarantees to Armenian private trade banks and will enable them to refinance the credit programs focused on small and middle business using credits given by international financial structures.

“We have already piloted the project in Eastern Europe and it has proven to be effective. We want intensive economic growth, which has been seen in Armenia for past two years, to continue”, Claus Glaubit says.

Vardan Khachatryan said Armenian government has signed a number of projects with Germany. “All of these programs are effective. The German side has thought out the mechanism ensuring a 100-percent return of all credits given. It means crediting is being performed in the right way”, he said and added that amount of 5 million Euro is still to be given by German side under the project.