YEREVAN, OCTOBER 23, ARMENPRESS: Within the framework of German-Armenian fund German KfW Bank will provide 5 mln euro to Armenian Central Bank for crediting of small and medium business. The same amount will be provided for funds for investments insurance in Armenia. It is also foreseen that the German bank will invest 5 mln. euro in insurance fund, supporting Armenian trade banks to get investments from foreign banks.

According to the signed agreement, Armenia can change the percentage of the loan in accordance with percentage rate in the market and can prolong the term of the loan's payoff by five years. The agreements were reached during the fourth session of German-Armenian fund's supervision council taken place in Frankfurt in October of this year.

During the today's press conference held at Armenian CB, its chairman Tigran Sargsian said that the issue concerning the German Bank's participation in the capital of Armenian trade banks was also discussed with the representatives of KfW. In his words, this is a serious step, which will raise the level of trade banks' management. Sargsian also informed that an agreement was reached with DeutscheBundesbank directed towards the strengthening of German private investments in Armenia.

According to him, at the present moment German programs to a total value of 100 mln euro are being realized in Armenia and the strengthening of private investments is of a great importance. In this respect, an agreement was reached to organize a business forum next year in Frankfurt, during which business programs on Armenian-German cooperation will be presented and some works will be realized with those private companies interested in investments of their capital in Armenia. For this purpose Armenian-German work group is being already created. The chairman of Armenian CB said that this process will be greatly supported by the visit of Armenian president to Germany planned for the next year.

Sargsian also informed that an agreement to organize a round-table discussion dedicated to cooperation between Armenian and Russian banks was reached with the chairman of Russian CB Sergey Ignatiev. This event can support the formation of favorable atmosphere in financial system for the two countries.