World Bank to allocate US$60 million to Armenia

The World Bank’s Board of Executive Directors approved the First Development Policy Operation (DPO-1) for Armenia in the amount of US$60 million Thursday, the WB Office in Yerevan reported.

In the context of the global economic crisis, the proposed series of three annual Operations supports Armenia’s two strategic objectives of (i) addressing vulnerability to the current shocks by protecting the poor and supporting greater human capital development; and (ii) 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.

“This Operation supports the implementation of the Government's program to help mitigate the social impact of the externally-driven crisis and attract private investment for strong post-crisis growth,” said Mr. Asad Alam, World Bank Regional Director for the South Caucasus. “It provides for maintaining essential social services, particularly for the poor and the vulnerable, who are hurting from the loss in jobs and incomes.”

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

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