PROVISIONS OF ARMENIAN-GERMAN INTERGOVERNMENTAL AGREEMENT CORRESPOND
TO ARMENIA's CONSTITUTION


YEREVAN, JUNE 7. ARMINFO. Provisions of the Armenian-German
intergovernmental Agreement on financial cooperation within the
Caucasian Initiative's framework correspond to Armenia's
Constitution. Such a verdict was returned today by Armenia's
Constitutional Court.

As informed Armenia's deputy minister for finances and economy David
Avetissyan, presenting at the courtroom country's president's
interests, the Agreement was signed in Yerevan by Armenia's minister
for finances and economy Vardan Khachatryan and Germany's Ambassador
Extraordinary and Plenipotentiary to Armenia Heike-Renate Peitsch on
April 7, 2005.

According to the Agreement, Germany will give 7.5 mln euro for the
renewable energy development in Armenia. 6 mln euro will be allotted
as a lax credit for technical modernization of the acting small
hydroelectric power stations (HPS). The credit will be given on 40
year with 0.75% annual profits and the first 10 year repayment
period. The Program will be implemented within 2 years from the day of
its ratification by country's parliament. A German-Armenian
reinvestment Fund on renewable energy will be established to manage
the credits. In its turn, the Fund will give credits to the small HPSs
through Armenia's commercial banks to be elected by a tender. The
rest 1.5 mln euro will be given as grants and directed to conducting
consultations for the heads of banks and HPSs.

To note, Germany has given Armenia 127 mln euro since 1995, of them
100 mln euro are credits, and the rest sum are grants. -r-

From: Emil Lazarian | Ararat NewsPress