EU decides to provide Armenia with 65 mln euros loan and up to 35 mln euros grant
The European Union agreed to provide Armenia with a loan of 65 million euros and a grant of up to 35 million euros to help the country out of the global economic crisis, RBC reported.
As reported to Armenian ARMINFO agency in the information centre of the European Neighbourhood and Partnership Instrument (ENPI), macro-economic assistance is to supplement the budget sector of assistance programs under the ENPI. This aid is a part of a package of external funding sources to cover the needs of the Armenian balance of payments in 2011.
The aid is one of the terms for the implementation of economic programs agreed between Armenia and the International Monetary Fund (IMF), along with measures of economic policy, agreed between the EU and Armenia.
"The first tranche of 40 million euros will be provided after the ratification of the Memorandum of Understanding and agreements on loans and grants by the Armenian Parliament. The second tranche will be allocated in the autumn of 2011." - The report says.
In addition, the report stresses that the impact of the global crisis had particularly a strong impact on the Armenian economya, which led to a decline in GDP by 14,2% in 2009. In 2010. economic activity, supported by appropriate macroeconomic policies, has recovered, but the real GDP grew by 4%. While the economic recovery supported, the situation with external sources, remains vulnerable because the financing of large current account deficit remains uncertain.