Finance Minister And World Bank Representative Sign Credit Agreement

FINANCE MINISTER AND WORLD BANK REPRESENTATIVE SIGN CREDIT AGREEMENT

ARMENPRESS
Nov 29 2007

YEREVAN, NOVEMBER 29, ARMENPRESS: Armenian finance and economy minister
Vartan Khachatrian and Ms. Naira Melkumian, acting head of the World
Bank Yerevan Office, signed today an agreement whereby the World Bank
will give Armenia US$18.5 million Fourth Poverty Reduction Support
Credit (PRSC).

The credit was approved by the World Bank November 27. This project
will support the implementation of the government’s Poverty Reduction
Strategy Program (PRSP) by helping to sustain economic growth,
providing resources for the budget, bolstering the fight against
illegal logging and facilitating priority reforms of the government.

This fourth installment will bring total budget support from the Bank
to over $85 million since 2004.

A key objective of the program is to ensure that customs and tax
administrations are reformed in order to reduce corruption, thereby
improving the prospects for investment. The credit is also supporting
adequate monitoring and combating of illegal logging in order to
ensure that Armenia’s forests are protected. The conservation of
Armenia’s forests will help the poor as they will benefit from more
investment opportunities in rural and mountainous areas.

The credit is provided on concessional terms, with a maturity of 20
years, and a grace period of 10 years.

Since joining the World Bank in 1992, Armenia has benefited from
US$1.1 billion in loans for 49 projects.