WB to extend $60-million credit to Armenia as part of first development
policy operation

YEREVAN, July 4. /ARKA/. The World Bank’s directorial board has
approved extension of $60-million credit to Armenia as part of First
Development Policy Operation ` DPO-1, of three similar operations to be
provided to Armenia within three years, Aristomene Varoudakis, head of
the World Bank’s Yerevan Office, said at a press conference on Friday.

Relevant programs would be worked out for two years and their cost will
be estimated, but their total cost is limited to $100 million,
Varoudakis said answering the question ARKA News Agency put to him.

He added that this sum is a part of the WB’s $545-million credit to be
extended to Armenia over 2009/2012.

The head of WB Yerevan Office said that two key aims of the DPO-1 are
to mitigate adverse impact of the global crisis on insecure social
strata and to support Armenia in its efforts to retain economic growth
in post-crisis period by strengthening the country’s competitive
ability and attracting investments in all the sectors of the economy.

Varoudakis said that the World Bank plans to enlarge funds for social
programs, including system of family benefits, pension system and
social security network.

The program will also enhance social security of low-income families in
healthcare and education areas.

Varoudakis said that to restore economic growth pace by enhancing
Armenia’s competitive ability, DPO-1 will imply reduction in expenses
for organization of business, modernization of Armenian State Revenue
Committee and adoption of a new law on public services. This law will
include a provision about collision of interests.

The head of the WB Yerevan office also said that $8 million of the
$60-million credit must be used for funding the programs focused on
family and unemployment benefits as well as healthcare for low-income
families, consulting services in agriculture and equipment for high
schools.

The money will be lent at 0.75% interest for 20 year with a decade-long
preferential period.

The World Bank has lent $1.25 billion to Armenia since 1992. M.V.-0—

From: Emil Lazarian | Ararat NewsPress