Chairman of the Central Bank of Armenia (CBA) Artur Javadyan received on Tuesday a delegation of the German KfW bank led by Eva Witt, Vice President, KfW Bankengruppe.

The CBA chairman pointed out with satisfaction that Armenian-German financial cooperation is entering a new stage of development. Evidence thereof is a newly launched agricultural development program.

Under the Agricultural Assistance loan program co-funded by the Armenian government and the Federal Ministry for Economic Cooperation and Development of Germany, the KfW bank and CBA signed a €15m loan agreement and a €250 grant agreement on June 11, 2012.

Under the program, Armenia’s government allocated an additional US $5.5m to the CBA under the earlier completed Loan Guarantee Fund program. The funds were allocated from the grants provided to the government.

The loan program will be implemented throughout Armenia. Under the program, Armenia’s commercial banks will get ampler opportunities to issue agricultural loans. The program is supposed to promote Armenia’s agricultural development.

The Frankfurt School of Finance and Management Company is advisor to the program.

The KfW bank will give the CBA the loan on easy terms.

Among the Armenian banks involved in the program on a competitive basis are Araratbank, ACBA Credit Agricole Bank, Ardshininvestbank, Inecobank, Procredit Bank.

The sides also discussed the financing of a new renewable energy program.