July 3, 2009 - 20:27 AMT
WB to provide $60 million funding to Armenia
The World Bank's Board of Executive Directors approved the First Development Policy Operation (DPO-1) for Armenia in the amount of $60 million.  

In the context of the global economic crisis, the proposed series of three annual Operations supports Armenia's two strategic objectives of addressing vulnerability to the current shocks by protecting the poor and supporting greater human capital development; and improving competitiveness by removing constraints to better governance and a more favorable investment climate-a key requirement for post-crisis recovery and growth over the medium term.  

The DPO aims to help Armenia mitigate vulnerability by supporting measures such as increased funding for social safety net programs, including Family Benefits (FB), pensions, and unemployment insurance; undertaking a review of the FB program to improve targeting efficiency; restoring funding for selected priority programs for the poor and vulnerable in health with service delivery reforms; improving tertiary and preschool education, as well as by strengthening sustainable use of energy and natural resources with more robust environmental impact assessment.  

For strengthening competitiveness for recovery and growth, the Operation supports intensified banking sector surveillance and liquidity provision; reduced costs of business registration; adoption of a timebound action plan and key performance indicators for priority reforms of the State Revenue Committee; preparation and publishing of a Public Expenditure and Financial Accountability (PEFA) assessment to serve as a baseline for future reforms; presentation to the National Assembly of the Law on the Public Service, including provisions for addressing conflict of interest issues. 

The IDA Credit will be made to Armenia on terms including a 20 year maturity and 10year grace period.  

Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia total approximately US$1,247 million.