WORLD BANK TO PROVIDE 525 MILLION DOLLARS TO ARMENIA

Noyan Tapan

Jan 27, 2009

YEREVAN, JANUARY 27, NOYAN TAPAN. The World Bank will provide 525
million dollars for programs to be implemented under the Strategy of
Partnership with Armenia in the next 4 years, as well as for technical
assistance and advisory services. The WB Vice President Shigeo Katsu
said at the January 27 meeting with reporters that the indicated
sum exceeds 2.5fold that allocated in 2004-2008. "This large amount
of assistance by the bank is conditioned by the definite process
of reforms in Armenia, the quality of the Sustainable Development
Program of the RA government and the challenges that Armenia faces
under conditions of the global economic crisis," S. Katsu said.

According to him, the financing will be done under 5 programs. It is
envisaged providing credits for development of rural areas and small
and medium business, research on temperature which will be done in
Armenia for the first time in cooperation with the International Bank
for Reconstruction and Developement (IBRD). Other organizations of
the World Bank will provide up to 800 million dollars in the form of
investment quarantees to Armenia.

S. Katsu underlined that the World Bank aims to neutralize or reduce
the consequences of the global financial crisis in Armenia within a
short period of time. He noted that in fact, the financial sector
of Armenian economy was not affected at the first stage of the
crisis. However, during the second stage the impact of the crisis on
real economy will be greater if there is a fall in demand for goods
exported from Armenia.

In the words of the WB’s newly-appointed Regional Director for South
Caucasus Asad Alam, Armenia has status of a middle-income country so
the small and medium business crediting program is the first credit
on the conditions of the IBRD, thanks to which the country will have
an opportunity to make more reforms.

It was mentioned that Armenia has received 220 million dollars from
the World Bank in 2004-2008. During its cooperation with Armenia,
the World Bank has provided credits of a total of 1.1 billion dollars
under more than 50 programs.