NOV. 4 2015 (The Conway Bulletin) – The Almaty-based Eurasian Development Bank is close to agreeing a deal to lend the Armenian government $300m to help it through the economic malaise enveloping the Central Asia and South Caucasus region.
If it is agreed, the first $100m is due at the end of this year with the outstanding $200m handed over by the end of 2017.
Like other countries in Central Asia and the South Caucasus, Armenia has been trying to deal with the fallout of the drop in oil prices and a recession in Russia which have combined to tip the entire region into an economic depression.
“Current macroeconomic actions have been agreed with the Armenian government,” Dmitry Pankin, the EDB CEO, told the Armenpress news agency.
“The project has been approved by the expert council and is now being considered by the Eurasian Stabilisation and Development Fund. After the official decision, the final conditions will be agreed upon.”
The Eurasian Development Bank is an overtly political organisation. It’s membership mirrors the membership of the Kremlin-led Eurasian Economic Union — Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia — with the addition of Tajikistan.
It was set up before the Eurasian Economic Union to give the trade bloc extra weight.
It also acts as a kind of sweetener. Armenia is reliant on Russia for economic and political support. It joined the Eurasian Economic Union at the start of this year under duress from Russia but can now access cheap loans to keep its economy running.
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(News report from Issue No. 255, published on Nov. 6 2015)