Eurasian Fund to give $300mln soft loan to Armenia

PanARMENIAN.Net - Eurasian Fund for Stabilization and Development will provide Armenia with a soft loan of $300 million, Russia's Deputy Finance Minister Sergei Storchak said.

Armenia had initially applied for a larger sum, he said.

According to Storchak, standard conditions were applied for the loan provision. "If I am not mistaken, it will be granted with an annual interest rate of up to 1%," the deputy minister said, according to TASS.

Belarus was the first country to get such loan from the fund.

The Anti-crisis Fund of the Eurasian Economic Community (ACF) at the amount of US$8.513 billion was established in 2009 by Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia and Tajikistan. ACF’s main goals are to assist member countries in overcoming the consequences of global financial crisis, to ensure their long-run economic stability and to foster economic integration. The ACF member states appointed EDB the manager of the Fund. As the ACF manager, EDB prepares and implements the Fund’s program.

In June 2015 ACF was renamed as the Eurasian Fund for Stabilization and Development (EFSD). The Fund has been renamed because of the abolishment of the EurAsEC as a result of the establishment of the Eurasian Economic Union.

The Fund has two main instruments: financial credits and investment loans. Financial credits are granted to finance budget deficits as well as to support balance of payments or national currencies. Investment loans can be used to finance the interstate investment projects.

In addition to financial and investment credits, it can provide grants to its member states.