Ameriabank, IFC signed $15-million loan agreement to finance renewable energy

PanARMENIAN.Net - Ameriabank and International Finance Corporation (IFC) signed $15-million agreement to finance small-scale renewable energy enterprises. The agreement was signed by the Chairman of the Board, Director General of Ameriabank CJSC Artak Hanesyan and the IFC Regional Head for the Caucasus Thomas Lubeck on December 22 in Yerevan. 



"This is the second contract the bank has signed with IFC within a year,  I hope our cooperation will strengthen and continue in new joint programs," Artak Hanesyan said.



The credit funds will be provided to small scale renewable energy businesses for up to 8 years with a 3-year grace period, at a 10 to 12 per cent annual interest rate. 



According to Mr. Lubeck, the funds will be aimed at increasing the country's capacities in renewable energy. This agreement is a part of IFC $1 billion worth to combat energy conservation and global warming. "Armenia does not have its own energy resources, so it needs to develop its potential in the field of renewable energy," he said. "It is projected that small hydroelectric power plants of up to 20 MW capacity, enabling to reduce CO2 emissions by up to 30 000 tons per year, will be built in Armenia."