WORLD BANK IN FAVOR OF ARMENIA’S ANTI-CRISIS PROGRAM

ARKA
Oct 19, 2009

YEREVAN, October 19. / ARKA /. World Bank General Director Ngozi
Okonjo-Iweala supports the Armenian government’s anti-crisis program.

As Okonjo-Iweala reported at a press conference on Sunday, the
Armenian government and the economic team of the president of the
country properly and promptly respond to the crisis situations and
the right fiscal policy in accordance with the circumstances.

In particular, she commended the complete preservation of social
expenditures of the state budget of Armenia.

As Okonjo-Iweala noted, the world financial crisis affected the
economy and led to a reduction in transfers to the republic, tensions
and rising unemployment.

According to the National Statistical Service of RA, the unemployment
rate in Armenia in January-August 2009 amounted to 6.8% against 6.3%
in January-August 2008.

During January-August 2009, Armenia’s banking system received 672.3
million USD by physical entities, which is 35% or 363 million USD
less for the same period in 2008.

"Obviously, this led to a reduction in the level of tax collection
and reduced the government revenues, but I must say that the Armenian
government responded adequately to this," she said.

According to general director of the World Bank, in addition to
preserving social security payments, the Government of Armenia is
to overcome the negative impact of the global crisis by actively
promoting small and medium businesses, and taking steps make the
credit lines more accessible to SMEs.

Okonjo-Iweala expressed the willingness of the World Bank to assist
the Government of Armenia in these events, as well as in maintaining
and building new infrastructures.

In the Armenian economy, a decline of 18.4% was recorded in
January-August 2009 over the same period in 2008.

From: Emil Lazarian | Ararat NewsPress