Yerevan, October 28 - A $20.3 mln credit program of IFAD ''Economic Development of Rural Areas'' was signed in Yerevan, Thursday by Armenian Minister for Finance and Economy Vardan Khachatryan and Head of IFAD programs in Armenia Ganing Peterson.

Minister Vardan Khachatryan said that the credit will be issued to Armenia for 40 years, including 10 years on preferential terms, at the annual interest of 0.75%. He said that under the above program, IFAD credit line is $15.3 mln, the remaining $5 mln will be provided by the Fund of Economic Development attached to OPEC as a grant. The minister said that besides the Agricultural Cooperative Bank the fund has cooperated with for already several years, the program will include in it other commercial banks of Armenia meeting the criteria required for participation in the program. The minister said that the final agreement will be signed by the end of the year in the Athens. On the part of Armenia, the document will be signed by Presidency Robert Kocharyan.

In his turn, G.Peterson pointed out the efficiency of implementation of IFAD programs in Armenia, adding that the main stress of the program ''Economic Development of Rural Areas'' will be put on the long term of the provided funds, which will aim development of small and medium-scale entrepreneurship in the Armenian villages. Besides, he said that the program also aims economic development of regional infrastructures.

It should be noted that the above program will be implemented in three major directions. The program allocated over $9.5 mln for crediting of agricultural entrepreneurship, with two types of credits to be issued under this component: some $5 mln for crediting of family enterprises, and $5-$150,000 for development of SMEs in villages. $0.31 mln are allocated for implementation of the second component, development of the network of organizations providing business services. The third component is aimed at economically based restoration on infrastructures, with $9.4 mln being issued for the given component, including $4.4 mln issued by IFAD, $5 mln by the OPEC Fund for Economic Development. In conformity with the draft agreement, commercial banks will provide debtors with funds for some 7 years under 8-11% of annual interest.

It should be noted that IFAD implemented its first credit program in Armenia in 1998-2001, using $13,5 mln for implementation of various agricultural programs. By July 1, 2004, under the currently implemented program some $14.858 mln have been used, including $3.8 mln in the first half of 2004.