June 1996

Bilateral Trade Agreement - provides for Most Favored Nation (MFN) status for products from both countries, improved market access, and nondiscriminatory treatment for U.S. goods and services in Armenia and Armenian products in the U.S. The agreement also provides strong intellectual property rights protection in reaffirming commitments to international agreements. In effect since April 1992.

Bilateral Investment Treaty - The U.S. and Armenia signed a BIT, which creates a legal framework to stimulate investment in Armenia, in October 1992. The BIT ensures that companies with foreign investment in each country will receive treatment which is no less favorable than that provided wholly domestic companies.

U.S. AND MULTILATERAL PROGRAMS IN ARMENIA

U.S. Department of Agriculture (USDA): USDA assistance to Armenia includes 1) grants of food assistance to help meet humanitarian needs in the countries, and 2) technical assistance to help develop the food of the various economies.

Overseas Private Investment Corporation (OPIC): OPIC has signed a bilateral agreement with Armenia authorizing it to provide loans, loan guarantees, and investment insurance to American companies that invest in the Republic of Armenia.

U.S. Agency for International Development (USAID): In 1995 the Eurasia Foundation announced the opening of its Small Loan Program for private businesses in Armenia. The Program is aimed at supporting local businesses through more favorable loan conditions.

U.S. Trade and Development Program (TDA): TDA is authorized to operate in Armenia. TDA provides funding for U.S. firms to carry out feasibility studies, consultancies and other planning services related to major projects in developing countries.

U.S. Export-Import Bank: Exim is not yet open in Armenia.

World Bank: Armenia is a full member of the World Bank. The World Bank provides financing to Armenia for capital infrastructure projects, such as roads and railways, telecommunications, and port and power facilities. Approved projects include: institution building loan of $12 million, March 1993; earthquake reconstruction credit of $28.8 million, January 1994; irrigation rehabilitation credit of $43 million, December 1994; power maintenance credit of $13.7 million, December 1994; import rehabilitation credit of $60 million February 1995; social investment fund of $12 million, January 1996; and highway project credit of $16 million, February 1996.

European Bank for Reconstruction and Development (EBRD): Armenia, as a country, and those U.S. companies investing in Armenia are eligible to receive EBRD loans. The EBRD emphasizes programs and activities that support privatization, financial reform, industrial restructuring, the creation and strengthening of infrastructure, foreign investment inflows and environmental repairs. Approved projects include: Hrasdan Unit No. 5 - a sovereign loan of $57.4 million was approved in 1993 to complete construction of a new 300 MW gas-fired power station, and a transmission line; Yerevan Zvartnots Air Cargo Terminal - a loan of $22.8 million was approved in 1994 to finance modern landing and loading facilities at the terminal; wholesale market - in December 1995 the EBRD approved a loan of $15 million to provide financing for the establishment of a modern wholesale market facility in Yerevan.

International Monetary Fund (IMF): The IMF approved $47.2 million in systemic transformation facility funds in December 1994; a stand-by arrangement of $59 million in 1995; and an enhanced structural adjustment facility of $148 million in February 1996.