Armenian Finance Minister David Sarkisyan told the government that Armenia has started paying off the Russian loan ahead of time, RIA Novosti reports.
Russia granted Armenia a 15-year loan worth $500 million in 2009. It was granted at the LIBOR + 3% rate and an annual rate of 4% with a 4-year beneficiary period.
Armenia received a tranche on June 12, 2009. About $492 million will be spent to boost the economy.
Armenia will pay the debt off through eurobonds released on September 19. The emissions released total $700 million with a repayment period of 7 years, income 6%. Deutsche Bank AG, London Branch, HSBC Bank plc and J.P.Morgan Securities plc. are the main undewriters. The demand for dollar bonds exceeded $3 billion in Armenia.
Prime Minister Tigran Sargsyan said on September 27 that the remaining $460 million will be paid to Russia.
Armenia plans to spend $44 million annually to cover the governmental debt.
