The Reconstruction Credit Institute (Kreditanstalt für Wiederaufbau – KfW) was established in 1948. It is owned by the Federal Republic of Germany (80 percent) and the States of Germany (20 percent). Bank portfolio in Armenia comprises EUR 787 million, in which the energy sector has a dominant role, amounting to about 50 percent, administrative infrastructure – 26 percent, financial sector – 22 percent, natural resource management and other sectors - one percent for each sector. The activities of the Bank are aimed at ensuring economic and social progress in the countries with developing and transitional economy in order to improve the standard of living of the society. The Reconstruction Credit Institute carries out its activities in Armenia since 1998. During the recent 15 years various programs has been implemented in the spheres of financial crediting of micro, small and medium-sized enterprises, energy, infrastructures and municipal management, particularly:
- “Development of a Sustainable Housing Finance Market” Program (a loan of EUR 12 million and a grant of EUR 1.5 million, for which the second component is planned totaling to EUR 20 million)
- “Deposit Guarantee Fund” Program (with EUR 3.5 million lend funds)
- “Vorotan Hydroelectric Power Plant Cascade” Program (with EUR 51 million loan)
- “Credit Line for Renewable Energy Sector” Program ( a loan of EUR 18 million and a grant of EUR 1.5 million – 11 small hydroelectric power plants projects were financed in the framework of the Program)
- “Economy of Waste Processing Favourable for the Climate, Armenia, 1st Phase” Program (with EUR 20 million loan)
- “Renewable Energy Support, 3rd Phase” Program (with up to EUR 40 million loan)
- “Community Infrastructure, 2nd Phase, 3” Program (a loan of EUR 30 million and a grant of EUR 2.05 million)
- “Integrated Water Resources Management/ Akhurian River, 1st Phase” Program (a loan of EUR 50 million and a grant of EUR 2 million)
- “Armenia-Georgia High Voltage Transmission Line Construction” Program (with EUR 75 million and EUR 10.2 million loans)
- “Caucasus Energy Union, 3rd Phase (Armenia-Georgia High Voltage Transmission Line, Substations)” Program (with EUR 83 million loan)
- “Efficient Use of the Energy Program at the MSME” Program (with EUR 20 million loan)
- “Restoration for Raising Energy Efficiency in Schools” Program (with EUR 15 million loan)
- “Caucasus Energy Union, 3rd Phase (Armenia-Georgia High Voltage Transmission Line, Substations)” Program (with up to EUR 100 million loan)
- “Housing Finance, 4th Phase” Program (with up to EUR 20 million loan)
On November 21-22, 2016, at the Ministry of Finance the regular sitting of Armenian-German Financial and Technical Cooperation Commission took place, which discussed the further allocations financed by the Reconstruction Credit Institute (KfW), which include the continuous stages of those programmes which are to support the sphere of agriculture refunded by the German-Armenian Fund of RA Central Bank and to increase the energy effeciency of small and medium-sized enterprises; hard waste management programme in Vanadzor, etc. During the sitting it was also discussed the question of insertion of agricultural insurance system for the first time in Armenia, and the German side expressed willingness to provide grants in its frameworks.