WB approves US$ 25 mln loan for Armenia

January 12, 2011 - 12:22 AMT

PanARMENIAN.Net - The World Bank Board of Executive Directors approved a package designed to help Armenia protect the poor and support greater human capital development, and also strengthen competitiveness and private sector development.

The Second Development Policy Operation (DPO) for Armenia, a loan of US$ 25 million, is the second in a series of three operations designed to support the Government of Armenia in meeting its strategic objectives.

This operation supports the protection of pro-poor spending in the state budget; the targeting of social safety net programs; increased access to pre-school programs in poor communities; and improved efficiency of health services delivery through the introduction of performance-based contracting for treatment of non-communicable diseases.

To enhance Armenia’s competitiveness and raise its growth potential, this Operation helps strengthen the competition framework and implement a new Mining Code adhering to international best practice for fiscal, environmental, social, and licensing standards. It also supports key reforms aiming at improving the business climate and reforming the tax administration.

“The World Bank is committed to support the authorities’ efforts in all these important agendas over the long term and, in this regard, a third DPO under preparation expects to continue the focus on post-crisis competitiveness and growth and on the strengthening of health, education and safety net programs,” commented Jean-Michel Happi, the World Bank Country Manager for Armenia.

The Second DPO includes an IDA credit equivalent of US$ 21 million and an IBRD loan of US$ 4 million. The IDA credit carries a maturity of 20 years including a grace period of 10 years and the IBRD loan has a maturity of 25 years including 10 year grace period.

Since joining the World Bank in 1992 and IDA in 1993, the commitments to Armenia total approximately US$ 1, 433 million.