The NA Ratified the Loan Agreement to Improve the Energy Sector

The National Assembly ratified the loan agreement on the "Energy sector’s financial recovery program" signed between the RA Government and the International Bank for Reconstruction and Development" during the session held on June 17.

It is intended to provide $ 30 million by the agreement. The loan repayment period is 25 years, with a grace period of 14.5 years.

The long-term loan with the low interest rates providing by the International Bank for Reconstruction and Development will be used for the implementation of the program of financial recovery of the energy system.  

Within the framework of the amount it is expected to be repaid the state companies’, especially  the "YTPP" and "ANPP" CJSC-es, short-term loans with high interest rates,  involved from the commercial banks.

Partially will be repaid the "Yerevan Thermal Power Plant"s’ natural gas debt to "Gazprom Armenia" CJSC. The debt accumulation is caused by the credits extended to  "Nairit Plant" and "Vanadzor Khimprom" by the "Yerevan Thermal Power Plant" .

The amount was been directed either to the payment of salaries of the employees, or to the maintenance expenses of the mentioned companies.
The return of the credits will be the way of the redemption of the loans.