IMF and WB reaffirm support for Turkish-Armenian border reopening

PanARMENIAN.Net - The International Monetary Fund and the World Bank have reaffirmed their strong support for the reopening of the Turkish-Armenian border, saying that its positive impact on Armenia's recession-hit economy could be felt as early as next year.



Senior officials from the two multilateral US-led lending institutions welcomed economic implications of the unprecedented thaw in Turkish-Armenian relations which will result in the signing of key fence-mending agreements between Ankara and Yerevan later this week. Speaking to RFE/RL on the sidelines of the ongoing IMF and World Bank meetings in Istanbul, they said that growing signs of economic recovery around the world should also reflect positively on the economic situation in Armenia.



According to the latest IMF projections presented during the global forum, the Armenian economy will grow by 1.2 percent next year after enduring one of the steepest declines in the world this year. The World Bank also expects renewed modest growth in the South Caucasus country in 2010.



Ratna Sahay, deputy director of the IMF's Middle East and Central Asia Department, said the growth rate could well be higher if the Turkish-Armenian frontier is opened for commerce and travel soon. "Once the border opens up we think that the impact would be pretty quick because it would reduce Armenia's transportation costs tremendously," she said. "There would also be a lot of indirect impact through trade in goods and services with Turkey."