ArmRosgazprom pays back half of $40 million government loan

YEREVAN, December 29, /ARKA/. ArmRosGazprom (ARG), Armenia’s national gas distribution company, has paid back half of a $40 million loan provided by the government, Armenian finance minister Tigran Davtian said today. Speaking at a news conference he said the company will repay the loan fully early next year.

The loan, repayable in six months at the annual interest rate of 11 percent, had been approved by the government during a cabinet meeting held in the northern Armenian city of Vanadzor on October 1. A government statement issued after the meeting said it would be allocated from the state budget “in the fourth quarter of 2009.”

A statement by ARG spokeswoman said the loan would be used for financing the ongoing construction of a major thermal-power plant and renovation of natural gas pipelines connecting Armenia to Iran.

ARG is the only company dealing with import and distribution of Russian natural gas coming to Armenia from Russia via Georgia. It was established in 1997. Russian Gazprom holds 80 percent in it, the rest is owned by Armenian government. ($1 – 377.32 Drams).-0--