InternationalWorld Bank more than doubles financial assistance to Armenia
Published: Friday January 30, 2009
Shigeo Katsu, vice president of the World Bank, in Yerevan. Photolure
Yerevan - The World Bank will grant Armenia financial support in the amount of $525 million over the next four years, said Shigeo Katsu, vice president of the World Bank, at a press conference on January 27. A delegation headed by Mr. Katsu met with Armenia's president, prime minister, Central Bank chairperson, and several ministers.
"In this time of unprecedented global crisis, which has already affected Armenia, we are looking for assistance solutions so that Armenia will overcome the crisis and its consequences," Mr. Katsu said. "The World Bank informed the authorities that after long deliberation, it decided to grant financial support amounting to $525 million within the World Bank's future strategic framework. This support is intended for financing new programs, technical assistance, and advisory services,"
This financial support will be granted over the next four years, until 2012. Mr. Katsu also underlined that this amount is 2.5 times more than the previous financial support granted by the World Bank in 2004-2008, which amounted to about $220 million. The $525 million financial support for the next four years includes assistance by the International Finance Corporation (IFC) for the improvement of Armenia's private sector to the tune of $50 million annually.
Mr. Katsu noted that the global crisis and Armenia's recent efforts to overcome it made the World Bank decide to double the amount of financial support for the country.
He also mentioned that organizations taking part in the World Bank delegation are also offering opportunities other than the ones granted by World Bank. "IFC and MIGA, a fund for multilateral investment insurance, constitute a branch of the World Bank that will support the private sector. MIGA will insure and guarantee the investments," he further explained.
Mr. Katsu said the support could grow to $800 million in the next four years. "Besides this support, we are also negotiating five other programs," he said.
According to the report of the World Bank Yerevan office, this support constitutes additional financing for the rural roads program, amounting to $25 million; the third program of the social investment fund, amounting to $8 million; the program for improvement of rural businesses, amounting to $2 million, and the program for conducting investigations on geothermal energy, amounting to $1.5 million.
Asad Alam, the new regional president of the World Bank, was also present at the press conference. "Besides the global economic crisis, which affects all states around the world, Armenia is now living a very important and also decisive moment considering its economic progress. Armenia belongs to the so-called average income countries. The World Bank values the achievements of this country and considers them rewarding and satisfactory, and therefore, IBRD's first loan is granted for supporting small and medium businesses. However, this support also reflects our hope and belief that Armenia will continue improving and progressing not only to overcome the current economic crisis, but also to secure a bright future for the country," said Asad Alam.
Mr. Katsu made the same assertion: "Armenia and the World Bank have developed an active and close cooperation. We expect this cooperation to be ongoing and permanent."
