WB to back Armenian state budget with $80 million

PanARMENIAN.Net - The World Bank Board of Executive Directors approved on February 14 financing designed to help Armenia to protect its poorest children, women and men, support greater human capital development, and reinforce competitiveness by providing a more favorable private sector environment and strengthening governance.

The Third Development Policy Operation (DPO) for Armenia totals $80 million, Jean-Michel Happi, the World Bank Country Manager for Armenia said at a press conference on February 17.

The Third DPO includes an IDA credit equivalent of US$ 50 million and an IBRD loan of US$ 30 million. The IDA credit carries a maturity of 25 years including a grace period of 5 years and the IBRD loan has a maturity of 25 years including 10 year grace period.

Jean-Michel Happi, the World Bank Country Manager for Armenia noted that implementation of the program will provide an opportunity to save spending of Armenia’s state budget in the social sphere, in particular, ensure its targeting, promote increased access to pre-school programs in poor communities of Armenia, and improved efficiency of education management, as well as the introduction of co-payment policy in health services delivery.

As to enhancement of Armenia’s competitiveness, Happi stressed the importance of establishing one-stop-shop for business registry process, e-filing system, etc.