POVERTY TO BE REDUCED BY ANOTHER 6% IN ARMENIA AS RESULT OF MILLENNIUM
CHALLENGE PROGRAM’S IMPLEMENTATION

YEREVAN, MARCH 31, NOYAN TAPAN. As a result of the implementation
of the Millennium Challenge Program (US), poverty will be reduced
by another 6% in Armenia, while peasants’ incomes will increase by
34%. RA Minister of Finance and Economy Vardan Khachatrian stated
this at the March 31 press conference.

According to him, in 2004, the poverty level made 39% and in 2003 –
43% in Armenia. The compact on implementation of this 5-year program
worth 235.6 mln USD was signed by Vardan Khachatrian and Executive
Director of the Millennium Challenge Corporation (MCC) John Danilovich
on March 27 in Washington. Armenia became the 8th country to sign this
compact with the US. According to the minister, about 145 mln dollars
out of the indicated sum will be used for repairs of irrigation systems
and construction of new reservoirs, and about 67.1 mln dollars – for
reconstruction of 945 km of community roads, which makes up nearly 45%
of the so-called “roads of life”. The minister noted that the work
under the program will be carried out by the program implementtaion
offices (PIO) of the World Babk, and a financial supervision body will
be set up to implement financial control. V. Khachatrian expressed a
hope that all preparatory measures of the program will be finished
by August, after which the implementation of the program will
start. It is possible that work worth about 6 mln USD will be done
this year. V. Khachatrian considered the version of discontinuing the
program as unlikely, assuring that Armenia meets all the requirements
of the MCC and the country is increasingly improving its positions. It
was noted that John Danilovich arrives in Armenia on April 10-15.