EBRD to allocate $25mln to Armenian banks for renewable energy financing

November 10, 2010 - 16:26 AMT

PanARMENIAN.Net - The European Bank for Reconstruction and Development (EBRD) has launched the Armenian Sustainable Energy Financing Facility (ArmSEFF) to help Armenia develop competitive private businesses.

Head of EBRD Office in Armenia Valeriu Razlog told journalists that $20mln will be allocated within ArmSEFF, while $5mln will be provided for the renewable energy field.

“The loan funds will be offered through Armenian commercial banks. Anelik Bank is the first one, with which we signed an agreement on loan provision. $3mln was allocated to the bank for on-lending the energy saving field,” he said.

Razlog believes that entrepreneurs conceive the importance of energy saving in Armenia, as the country lacks energy resources, while prices for fuel continue growing in global markets. “Our program will allow increasing enterprises’ incomes. The investment will create a possibility of decreasing energy costs, using the available resources more efficiently,” he said.

Head of the Lending Department at Anelik Bank Hayk Grigoryan said that the loan will be provided for five years with one-year grace period. The maximum amount of one enterprise’s loan will total $2.5mln. “The interest rate will be defined individually, depending on loan amount and other factors. However, they will be lower compared to other types of lending,” he said.