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The Agreement “On Financial Cooperation between the Government of the Republic of Armenia and the Government of the Federal Republic of Germany in 2020” was signed in Berlin on October 4, 2021.

According to the Agreement, Armenia receives certain financial means from Germany with distinct purposes.

“The total sum is the AMD equivalent to 116 million 400.000 Euros. 40 million out of it will be directed to the renewable energy loan, and 70 million will be directed to the loan of small and medium enterprises (SMEs) with privileged conditions,” the RA Deputy Minister of Economy Rafayel Gevorgyan noted.

The bill “On Ratifying the Agreement on Financial Cooperation between the Government of the Republic of Armenia and the Government of the Federal Republic of Germany in 2020” was debated at April 11 extraordinary sitting of the Standing Committee on Financial-Credit and Budgetary Affairs.

The Agreement designs to allocate up to 3 mln Euros financial assistance for the implementation of the program Biodiversity and Sustainable Local Development in Armenia.

40 million Euros financial assistance will be provided in the framework of the Recovery Development Policy Loan for Renewable Energy (II phase) DKTI (German Climate Technology Initiative).

70 mln Euros as a financial assistance with privileged conditions is designed for the implementation of the programs Boosting Small and Medium Enterprises (SMEs) III.

3 million 400.000 Euros will be provided for the implementation of the abovementioned two programs and the necessary accompanying events aimed at the technical support.

Signing of separate financing or loan agreements is designed within the framework of the Agreement, according to the scheduled programs later.

During the discussion the Deputy Chair of the NA Standing Committee Artur Khachatryan voiced questions, which related to the control of the loan use, the purposeful allocation of the money, the interest rates of the money being provided to the trade loan banks by the Central Bank.

The Chair of the Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan proposed to organize working discussion with the participation of the Central Bank and the interested organizations for specifying certain issues.

The Agreement was endorsed.