WORLD BANK ALLOCATES FIRST THEME OF POVERTY REDUCTION SUPPORT CREDIT TO ARMENIA

YEREVAN, November 19 (Noyan Tapan). The World Bank will allocate the
first theme of a Poverty Reduction Support Credit (PRSC) for Armenia
worth $20 mln. Roger Robinson, the Director of the WB Yerevan Office,
and RA Minister of Finances and Economy Vardan Khachatrian signed
the credit agreement on it in Yerevan on November 19. Roger Robinson
said during the November 18 press conference which followed the
signing that the Board of Directors of the World Bank completely
approved this new credit program consisting of four themes. It
is directed at the implementation of the RA government’s Poverty
Reduction Strategy program. A total of 75 mln dollars (the whole
sum of PRSC) will be allocated to Armenia during four years. The
credit will be made to Armenia on standard IDA terms, including 40
years maturity and a 10-year grace period. It will be given at 0.75%
annual interest rate. According to R. Robinson, the credit will be
transfered to the state budget and will contribute to the government
in poverty reduction. The first theme recognizes that a continuation
of Armenia’s exemplary macroeconomic performance over the past five
years is necessary to underpin high rates of growth. Moreover it
is supposed that the governance reforms will improve the climate of
public sector investment. The second theme of sharpening competition
and entrenching property rights – sutting across trade, utilities
regulation, property and contract law, banking and capital markets
and rural sectors – adrresses the key weaknesses in the competition
environment. According to V. Khachatrian, it became possible to
approve the program owing to a number of complex arrangements carried
out by the RA government. In particular, business atmosphere improved,
and it is expected that the work directed at the regulation of the
finacial market and the development of rural infrastructures will
be carried out next year. The Minister expressed hope that the first
part of the credit will be given to Armenia this December. A grant of
4.3 mln euros allocated by the Netherlands government will be also
directed at the implementation of the program. Vardan Khachatrian
also mentioned that Armenia’s work with international organizations
was very effective this year. He assured that the RA government is a
hopeful partner for international organizations and donor countries:
they work with Armenia in quite an active way and without doubts. Since
joining the World Bank in 1992 and IDA in 1993, the commitments to
Armenia make total approximately US $841 million for 37 operations.

From: Emil Lazarian | Ararat NewsPress