Germany to provide EUR 54.4 million to Armenia in loans and grants

On November 22, 2016, Deputy Minister of Finance of Armenia, Armen Hayrapetyan, and the Speaker for the South Caucasus at the Federal Ministry for Economic Cooperation and Development (BMZ), Johannes Dopffel, signed the results of the bilateral governmental consultations on development cooperation.

The Ambassador of the Federal Republic of Germany, Matthias Kiesler, praised the good cooperation between Armenia and Germany in his opening speech at the beginning of the consultations. “One of the hallmarks of German development cooperation is partner orientation. That is why our joint projects are so successful,” said Ambassador Kiesler.

For the bilateral financial cooperation via the Kreditanstalt für Wiederaufbau (KfW), loans and grants of EUR 54.4 million were agreed. The funds will finance the federal government programs of the German-Armenian Fund (GAF) on sustainable economic development (36.1 million euros) and promote the introduction of an agricultural insurance system (5.3 million euros). In the area of municipal infrastructure, EUR 8.3 million will be used for waste management in the Lori region, EUR 2 million to strengthen the water sector, and EUR 2.7 million for integrated water resource management in the Akhouryan River.

The German federal government will provide 22 million euros for regional projects within the framework of the Federal Government’s Caucasus initiative. Of these, EUR 21 million relates to technical cooperation and EUR 1 million to regional projects for financial cooperation.

The ongoing regional projects of the German Association for International Cooperation (GIZ) in the field of sustainable economic development, energy and the environment as well as democracy, municipal development and the rule of law are being pursued.


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