Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Russia loans Armenia $ 500m

MOSCOW, May 20 – Russia on Wednesday agreed to lend Armenia 500 million dollars to help the post-Soviet nation withstand the economic crisis, a finance ministry spokesman said.

The loan agreement was signed at a meeting in Moscow between Russian Finance Minister Alexei Kudrin and his Armenian counterpart Tigran Davtian.

The 15-year loan is to be spent on "measures to develop infrastructure, small and medium-sized business and the Armenian economy as a whole," Russian finance ministry spokesman Andrei Saiko told AFP.

It comes with a tolerable interest rate of four percent, he said.

The loan reflects Russia\’s close economic ties to Armenia, which is in a state of partial isolation due to conflicts with Azerbaijan and Turkey.

It is also in line with a Kremlin policy of rewarding allies with financial aide for their loyalty.

Moscow has repeatedly propped up Belarus\’ struggling economy and earlier this year promised more than two billion dollars in loans and aide to Kyrgyzstan.

That announcement came after the Central Asian state said a US military base on it territory would be closed.

Most recently, Prime Minister Vladimir Putin, visiting Mongolia last week, promised Ulan Bator "necessary credit resources," reflecting Russia\’s desire for a foothold in the resource-rich neighbour.

Advertisement. Scroll to continue reading.

Ukraine has also asked Russia for a five-billion-dollar loan, but the Kremlin said the country\’s pro-Western stance jeopardized Kiev\’s chances of getting the money.

The finance ministry spokesman declined to comment on the Ukrainian request Wednesday.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...