WORLD BANK TO HELP ARMENIA CONTINUE FARM SUPPORT PROGRAMS

ArmInfo
2009-03-18 14:19:00

ArmInfo. Parliament of Armenia has ratified an agreement with the
World Bank International Development Association (IDA) for additional
financing of commercial not-large farm support and community
development programs.

Deputy Minister of Finance Vardan Aramyan said the agreement was
signed on February 26 2009. The program was launched in 2005. The
additional funds were necessary to continue certain projects that
were frozen for lack of financing. Negotiations with the World Bank
proved successful. The credit worth 2.250 million dollars will be
provided on preferential terms for 20 years and a 10-year grace
period at the annual interest of 0.75%. Not large preferential
agricultural enterprises are the major beneficiaries of the
program. More favorable conditions of market access are currently
created for these enterprises. The funds will be used to implement
59 subprograms to boost agricultural production. This will not apply
to large-sized economies.

In addition, 600,000 dollars will be provided for development of
local government. In particular, water and gas supply programs will
be funded to make rural settlement more competitive.