Armenia, WB sign $60 million loan agreement

Armenia, WB sign $60 million loan agreement
ARKA, 07.07.2009

Armenia’s Finance Minister Tigran Davtyan and WB Country Director for the South Caucasus Asad Alam signed today a $60mln loan agreement as part of the First Development Policy Operation (DPO-1).

Alam stressed the importance of the loan for the RA government’s anti-crisis reforms.

The 20-year loan with a 10-year grace period and 0.75% interest rate is an attempt to help the Armenian authorities recover the crisis-hit economy and ensure long-term economic growth in the country.

Social reforms, as well as poverty reduction projects will be under the spotlight of the program.

The WB Board of Directors approved unanimously the loan agreement on July 2, Alam said, citing considerable progress in execution of economic reforms in Armenia. He also pointed out additional investments in road construction, education and more sustainable public services in irrigation, as part of the rural development programs. The WB country director hailed the Armenian government’s anti-crisis measures and attempts to ensure social welfare.

In his turn, RA Minister of Finance Tigran Davtyan said WB had not initially planned to extend this much to Armenia, adding the agreement was part of the four-year WB loan ($545mln) to the country.

“Taking into account the specifics of 2009, the World Bank met Armenia halfway, approving a $60mln budget loan to help the government cover the budget deficit and implement this year’s programs aiming to stabilize the country’s economy,” the minister said.

WB Yerevan Office Head Aristomene Varoudakis previously said the loan is the first in a series of three Development Policy Operations (DPO) worth $100mln.

WB has allocated $1.25bln for Armenia since 1992. Z. Sh.—0--