Armenia will significantly increase its revenues by reinforcing its role of a transit country between Europe, CIS and Middle East

Exclusive interview with Sergey Shatalov, Deputy Chairman,  Eurasian Development Bank Board and Managing Director of the EurAsEC Anti-Crisis Fund 

Shatalov - Not long ago, the EDB as the  manager of the Anti-Crisis Fund, received an official preliminary application of Armenian ministry of finance with a request to implement a $100 million worth project, which is part of North-South corridor. The project is  part of the framework road construction program ,  being implemented with the participation of several international financial institutions coordinated by the Asian Development Bank. The Anti-Crisis Fund’s opinion is positive.

Its Advisory Board, which is an intermediary body for submitting decisions to the Fund,  will meet March 28. We expect it to consider the Armenian finance ministry’s application for the financing of the 4th stage of North-South corridor. We believe it is a well-prepared project and hope that  members of the Advisory Board will support it and  submit it to the Anti-Crisis Fund’s Council- its highest body composed of the finance ministers of the six members of the Fund. The North-South transport corridor  is very important for economic development of Armenia. It is  the cornerstone of Armenia’s  plans to develop its transit potential. By strengthening its role of a  transit country for trade between Europe, CIS  and the Middle East, Armenia will significantly increase revenues. Transport and transport infrastructure are the priorities of the EDB, which account for more than a third of its investment portfolio. We consider it very important to support this project. The fact that this project will be financed by Anti-Crisis Fund is not surprising - such a project requires long-term lending and in this sense the financial terms of our bank are comparable to those of other international development banks. Both Armenia and other members of EDB and Anti-Crisis Fund look at development of transport and transit potential of the country as an important factor in strengthening its solvency and economic outlook.

Shatalov - The Anti-Crisis Fund’s Board had already discussed Nairit’s application for financing to resume production of chloroprene rubber on December 7, 2012, when it heard a representative of Armenia. The EDB as a manager of Anti-Crisis Fund’s means, received a report of engineering firm, evaluating the prospects for recovery of the plant. Armenian authorities want a strategic investor  to handle the  modernization of Nairit,  which is to be the borrower. To our knowledge, the Anti-Crisis Fund is looking into the  interest of potential strategic investors into the plant.  -0-