WORLD BANK APPROVES NEW CREDITS FOR ARMENIA, GEORGIA
Venla Sipila
World Markets Research Centre
Global Insight
November 3, 2008
The Board of Directors of the World Bank has approved new loans
of $20US million for both Armenia and Georgia for infrastructure
projects. In Armenia, the new credit is allocated to additional
financing of the Municipal Water and Wastewater Project for
rehabilitation and improvement of the water system. Meanwhile, the
Georgian credit was approved for additional financing of the Second
East-West Highway Improvement Project, aiming to reduce road transport
costs and improve ease of transit and safety on the East-West Highway
from Tbilisi to Ricoti, and to strengthen the government’s capacity
to develop and implement a traffic safety programme. Both credits
carry a maturity of 20 years and have a grace period of 10 years.
Significance:Both Caucasian countries have earned good relations
with international creditors with the solid reform progress, while
both of them also still face considerable challenges in restructuring
their economy. Furthermore, financing needs in Georgia have naturally
recently increased still further after the damage to infrastructure
caused by the war in August between Georgia and Russia. World Bank
has earlier announced that it will support Georgia’s post-war recovery
with additional financing worth $80US million within the frameworks of
the Georgian Poverty Reduction Support Operation and the Regional and
Municipal Infrastructure Development Project (see Georgia: 6 October
2008: ).
From: Emil Lazarian | Ararat NewsPress
