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Former Head Of Armenian Central Bank: Speaking Of Credit From Russia

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  • Former Head Of Armenian Central Bank: Speaking Of Credit From Russia

    FORMER HEAD OF ARMENIAN CENTRAL BANK: SPEAKING OF CREDIT FROM RUSSIA, ONE SHOULD NOT SUBSTITUTE LIBOR+3 WITH 4% ANNUAL INTEREST

    ArmInfo
    2009-05-26 12:36:00

    ArmInfo. Speaking of the credit from Russia, one should not substitute
    Libor+3 with 4% annual interest, the former head of the Armenian
    Central Bank Bagrat Asatryan told ArmInfo.

    He said that by standards of an interstate credit, the price is
    too high for Armenia. 'Let's call things by their proper names:
    Libor+3 is not 4%. No one knows how Libor will change in 10 years',
    B. Asatryan explained. In addition, he said, it is not clear what
    sectors this credit will be directed to and which enterprises will
    receive financing. B. Asatryan does not rule out that repayment
    of this credit may turn into continuation of the Property for Debt
    program. 'The funds are likely to be invested in the enterprises fully
    or partially belonging to Russia', he said. On May 20 Russian Finance
    Minister Aleksey Kudrin and Armenian Finance Minister Tigran Davtyan
    signed an agreement on provision of a 500 million US dollar credit
    by Russia. The credit maturity is 15 years, the interest Libor+3. The
    agreement provides for a 5-year grace period.
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