Russia and Armenia signed 15-year credit agreement for provision of $500 million

PanARMENIAN.Net - Moscow is to grant Yerevan a $500 million loan to prop up the Armenian economy amid the ongoing economic crisis.



Wednesday's agreement to extend the 15-year loan at LIBOR plus 3% was signed by Russian Finance Minister Alexei Kudrin and his Armenian counterpart Tigran Davtyan in Moscow.



Speaking at the signing ceremony, Kudrin said that the loan was granted on concessional terms, with interest at about 4% per annum, a reflection of the current market situation.



"We'll grant a five-year grace period, during which only interest will be paid," RIA Novosti cited Kudrin as saying.



The means received will be allocated to infrastructure development, support of small and medium-sized business and country's economy.