ADB TO PROVIDE $80 MILLION CRISIS SUPPORT FOR ARMENIA

armradio.am
09.07.2009 17:59

The Asian Development Bank (ADB) is extending $200 million in loans
and grants to help Armenia, Georgia and Tajikistan sustain critical
social spending programs that have been imperiled by the global
economic crisis.

ADB’s Board of Directors has approved two program loans of $80 million
equivalent for Armenia; two program loans of $80 million equivalent
for Georgia; and a program grant of $40 million for Tajikistan. All
the funds will come from ADB’s Asian Development Fund, a financing
facility that offers loans at low interest rates and grants to reduce
poverty in its poorest developing member countries. The loans are
expected to be fully used by the end of this year.

ADB’s funding support will allow the governments to deal with negative
shocks to budget revenue and maintain core spending programs for
critical social needs such as welfare payments and social services for
vulnerable groups. It will also allow them to push through with public
investments designed to preserve and create new jobs for economic
recovery. The funds complement assistance from other multilateral
agencies and bilateral sources, including the International Monetary
Fund, World Bank and European Union, and are aligned with the crisis
mitigation programs of the three countries.

"ADB’s programs, in tandem with the initiatives of other20development
partners, will support essential public spending to protect the poor
and vulnerable, as well as aid in the revival of the economies of the
three countries," said Xiaoyu Zhao, Vice President of ADB’s operations
in the region.