The World Bank’s Board of Executive Directors approved on Thursday, November 21 a new, €45.8 million ($50 million) loan for the Armenia Governance Development Policy Operation (DPO), a budget support operation.
The operation supports the government’s actions to strengthen economic, fiscal, and public sector governance by: (i) improving pro-competition, pro-trade and streamlined quality regulations and processes (ii) enhancing efficiency of revenue mobilization and public investment; and (iii) strengthening anti-corruption initiatives and the performance of the justice sector and the civil service.
The new lending comes on the heels of the widespread protests against weak governance and corruption in 2018 that culminated with the peaceful Velvet Revolution.
"The newly elected government, armed with a strong mandate for change, has put forward an ambitious five-year reform program, which aims to improve competitiveness and spur economic growth while meeting the people’s demands for good governance, greater transparency, accountability and effective public services," the Bank said in a statement.
The €45.8 million (about US $50 million) is an IBRD loan of fixed spread, with a 14.5-year grace period and a total repayment term of 25.5 years.