WB TO PROVIDE $60 MILLION FUNDING TO ARMENIA
/PanARMENIAN.Net/
03.07.2009 19:27 GMT+04:00
/PanARMENIAN.Net/ The World Bank’s Board of Executive Directors
approved the First Development Policy Operation (DPO-1) for Armenia
in the amount of $60 million.
In the context of the global economic crisis, the proposed series of
three annual Operations supports Armenia’s two strategic objectives
of addressing vulnerability to the current shocks by protecting the
poor and supporting greater human capital development; and improving
competitiveness by removing constraints to better governance and a
more favorable investment climate-a key requirement for post-crisis
recovery and growth over the medium term.
The DPO aims to help Armenia mitigate vulnerability by supporting
measures such as increased funding for social safety net programs,
including Family Benefits (FB), pensions, and unemployment insurance;
undertaking a review of the FB program to improve targeting efficiency;
restoring funding for selected priority programs for the poor and
vulnerable in health with service delivery reforms; improving tertiary
and preschool education, as well as by strengthening sustainable
use of energy and natural resources with more robust environmental
impact assessment.
For strengthening competitiveness for recovery and growth, the
Operation supports intensified banking sector surveillance and
liquidity provision; reduced costs of business registration; adoption
of a timebound action plan and key performance indicators for priority
reforms of the State Revenue Committee; preparation and publishing of
a Public Expenditure and Financial Accountability (PEFA) assessment to
serve as a baseline for future reforms; presentation to the National
Assembly of the Law on the Public Service, including provisions for
addressing conflict of interest issues.
The IDA Credit will be made to Armenia on terms including a 20 year
maturity and 10year grace period.
Since joining the World Bank in 1992 and IDA in 1993, commitments to
Armenia total approximately US$1,247 million.