WORLD BANK APPROVES EXTENSION OF 2009-2011 BUDGET SUPPORT CREDIT TO ARMENIA TO THE SUM OF $60 MILLION
ArmInfo
2009-07-03 12:20:00
ArmInfo. Executive Board of Directors of the World Bank has approved
extension of 2009-2011 budget support credit to Armenia to the sum
of $60 mln, Director WB Yerevan Office Aristomene Varoudakis said at
a press-conference on Friday.
According to him, the funds will be provided to the government
of Armenia for stimulation of the policy of economic reforms and
clearing-off of the budget deficit. Total cost of the program makes
up $100 mln. WB will take a decision on provision of the remaining
$40 mln in the second and third year of the program implementation,
Varoudaklis said. He added that the credit to $60 mln is called
to finance the social expenditures, in particular, unemployment
allowances, family allowances and pensions. The crisis affected mostly
the poor strata of Armenia, unemployment and the number of the poor
grew, WB representative said.
Along with it, A. Varoudakis said targeting of the family allowances
is not so great in the republic, and the government has to do its best
to increase it. He added that the credit resources will also allow
the authorities to carry out reforms in the health care, education
and public service. The credit to $60 mln (First Development Policy
Operation) is part of WB’s strategy of assistance to Armenia for
2009-2012 with total cost of $545 mln, he said. The credit will be
provided for 20 years at 0,75% interest rate per annum and 10- year
period of grace on payments. To note, Armenia has been receiving
credits from WB to the total sum of $1,247 bln since 1992.