ARMENIA AND WORLD BANK SIGN PACKAGE OF CREDIT PROGRAMMES AT $85 MLN

ArmInfo
2009-02-26 17:06:00

ArmInfo. Today Armenian government and the World Bank signed four
credit programmes at $85 mln, which were approved by the WB on
24 February, in Washington. The document was signed by Armenian
Finance Minister Tigran Davtyan and director of the WB Yerevan office
Aristomene Varoudakis.

The minister said at the press-conference that followed the signing
ceremony that the credits of the WB are directed to mellowing of
the negative affect of the world economic crisis at the economy
of Armenia. He also added that the programmes will pass the quick
procedure of ratification. The biggest credit $50 mln will be directed
to development of small and medium-sized business in Armenia. It will
be given at the conditions of IBRD – with repayment term 26,5 years,
privileged payment period over the first 5 years and with the current
rate of interest 4% per year. These conditions are harsher than the
privileged ones, but admissable for Armenia, the minister said. All the
rest loans Armenia will receive at traditionally privileged conditions
of the IDA – with 20 years repayment term, privileged payment period
over the first 10 years and 0,75% rate of interest. The credit $25 mln
is foreseen for construction of 100 km long of village motor ways in
2009. The credit $8 mln will be given to Social Investments Fund to
fulfill social programmes; and the credit $2 mln – to give credits
to agriculture companies, the minister said. The grant agreement at
$1,5 mln was also approved. It will be directed to development of
geo-thermal energy in Armenia. Davtyan also added that the package of
credits at $85 mln that has been approved recently, is the first part
of the strategy of the WB aid to Armenia for 2009-2012 at $525 mln.

To note, since 1992 Armenia has received credits from the World Bank
at the total sum $1,1627 mln.