YEREVAN (Armenpress) – The Russian government is expected to provide Armenia with an additional export loan of $100 million for purchasing modern arms.
The ratification of the agreement between the Armenian and Russian governments has been included on the agenda of each Cabinet’s October 12 meeting.
According to the agreement, the loan repayment term is 20 years, 5 of which is a grace period with a 3 % annual interest rate.
Provisions of the agreement also state that a separate agreement will be signed between the Defense Ministry of Armenia and Rosoboronexport defining the terms and conditions of the deal.
Previously, a credit agreement of $200 million for arms purchases was signed with Russia on June 26, 2015.
Great!
That means that the RoA could pay as much as $80.6 million in interest over the life of the loan, assuming the principal remains unpaid over the entire 20 year term.
let’s say that’s unlikely, and as a result, $40 million or so must be paid out… that ain’t chump change either!
Dear Garen. Key note it’s a export loan of a 100 million. Meaning raztamojka licensing fees in the RIGHT NOW. This is not a purchase on amount of cost it went to buying weapons it’s a amount of money being paid for RA as RA is a Landlocked nation the licensing fees to make the product (weapons) armenian after it crosses into the border. So let’s say this loan is 3% need pay of purchase made right now Armenia actually purchased a 30 billion weaponry deal in records 100 million is paid to make the weapons legal to use by Armenia once it crosses into Armenia. So hence it goes down as a 100 million dollars with a term and a interest on that term. Yet Armenia used that 100 million power right away to legalize 30 billion worth right away. Thanks