The 24th meeting of the Council of the Eurasian Fund for Stabilisation and Development takes place in Yerevan

08 December 2015

Today, the Council of the Eurasian Fund for Stabilisation and Development (EFSD; Fund) at its meeting in Yerevan approved the provision of the first tranche of the financial credit to Armenia and Armenia's preliminary application for an investment loan to build the Mastara water reservoir.

The Council approved the extension of the first tranche of the financial credit to Armenia from the EFSD in the amount of US $100 million as a result of the borrower's fulfilment of all obligatory conditions of the tranche.

Armenia's preliminary application for an investment loan from the Fund to finance construction of the Mastara water reservoir was approved in the amount of US $25.5 million. The project intends to develop irrigation infrastructure and increase water supplies to irrigated areas in Armaviri Marz. To this end, a water reservoir will be built and two water user associations will be modernised. The project will be prepared with a grant from the Trust Fund for Institutional Development in the Region of Europe and Central Asia (ECAPDEV) financed by the Russian Federation, in accordance with the World Bank procedures.

The Council also discussed the provision of financial credits to Belarus and Tajikistan. With respect to Belarus, it was decided that its reform programme needed sophistication. As for Tajikistan, the Council resolved to provide a US $40 million credit, in equal instalments of US $20 million in 2016 and 2017, provided that the government takes measures to eliminate distortions in the exchange rate mechanism.

In addition to the above issues, the Council of the EFSD approved the Procedure for the Provision of Grants to the Fund's Member States to support certain social sectors such as education, health care, state governance efficiency, and social support and protection, including food security.

Additional Information

Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

Read more at http://www.eabr.org/

The Eurasian Fund for Stabilisation and Development (EFSD) amounting to US$8.513 billion was formed as the EurAsEC Anti-Crisis Fund on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The objectives of the EFSD are to assist its member countries in overcoming the consequences of the global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The member states of the EFSD appointed EDB as its manager.

Read more at http://efsd.eabr.org/

ECAPDEV, or the Trust Fund for Institutional Development in the Region of Europe and Central Asia was set up in 2011 with the funds of the government of the Russian Federation and is managed by the World Bank. The objectives of ECAPDEV grants are to improve the quality of investment projects and the institutional potential of the agents engaged in their fulfilment.

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