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World Bank Plans To Accelerate Allocation Of Loans To Armenia To Hel

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  • World Bank Plans To Accelerate Allocation Of Loans To Armenia To Hel

    WORLD BANK PLANS TO ACCELERATE ALLOCATION OF LOANS TO ARMENIA TO HELP BOOST SMALL AND MEDIUM-SIZED BUSINESSES

    ARKA
    Sep 1, 2009

    YEREVAN, September 1, /ARKA/. Head of World Bank (WB) Yerevan Office,
    Aristomene Varoudais, told a Monday news conference that the WB plans
    to accelerate allocation of loans to Armenia to help it boost small
    and medium-sized businesses. He said the global financial and economic
    crisis is forcing all of us to seek non-standard solutions.

    He reminded that the World Bank Board of Directors had approved in
    February the US$25 million Lifeline Roads Improvement Project for
    Armenia, aimed to upgrade selected sections of the lifeline road
    network and create temporary employment in road construction; then
    it approved a $50 million Access to Finance for Small and Medium
    Enterprises (AFSME) loan program, designed to help the Armenian
    Government to strengthen access to finance for SME borrowers and
    improve the resilience of Armenia's private and financial sectors in
    the face of the impacts of the global financial crisis.

    In late July the World Bank approved a US$30 million Irrigation
    Rehabilitation Emergency Project (IREP) for Armenia aimed to improve
    water use efficiency. It was followed by approval of a $25 million
    Armenia Second Education Quality and Relevance Project designed to
    help enhance and facilitate learning in general education and improve
    the readiness of children who are entering primary education.

    According to=2 0World Bank Yerevan Office head, the Development Policy
    Operation loan for Armenia in the amount of US$60 million was very
    important. It was aimed to help the government to mitigate the impact
    of the global economic crisis and meet its social spending targets.

    On June 12 the World Bank Board of Directors approved a new Country
    Partnership Strategy (CPS) with Armenia, which provides the framework
    guiding for the World Bank's assistance to Armenia for 2009-2012.

    This Strategy, prepared at a time when Armenia was rocked by the global
    economic crisis, is intended to assist it to resume growth and reduce
    the impacts of the crisis on the poor. It also aims to help Armenia
    lay the foundation for a more competitive economy--a key requirement
    for diversified and sustainable growth. Within the frameworks of this
    new strategy the World Bank will provide Armenia with $545 million in
    loans, twice as much as it extended in 2004-2008. Some $150 million
    of the sum will be extended at IDA privileged terms, the rest of
    $395 will be provided at the International Bank of Reconstruction
    and Development terms for countries with medium GDP.

    Besides, the International Financial Corporation, a member of World
    Bank Group, will extend an additional loan of $120-160 million to
    private Armenian companies.
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