WB TO LEND $525 MILLION IN FOUR YEARS
ARKA
Jan 28, 2009
YEREVAN, January 28. /ARKA/. World Bank intends to lend $525 million
to Armenia within four years for implementation of new programs and
for technical assistance and consulting services, Shigeo Katsu, WB
vice president on Europe and Central Asia, said in Yerevan on Tuesday.
He said that this credit is 2.5 times larger than that extended in
the previous four-year period.
Katsu told journalists that, taking into account ongoing reformation,
the quality of the government’s stable development program and the
challenges the country faces because of the global crisis, the World
Bank has decided to enlarge the amount.
WB press office says that Armenian has received $220 million from
the bank over the period between 2004 and 2008.
Katsu said that this amount may be enlarged thanks to the money given
by international organizations included in WB group, particularly
International Finance Corporation and Multinational Investment
Guarantee Agency.
He said that the amount may reach $800 million in four years. The
enlargement will depend on investment programs.
The vice president said that the World Bank is now negotiating over
five programs aimed at solving problems in rural areas and ensuring
incomes for rural residents, particularly in summer.
The credit will be targeted on construction of rural roads and
infrastructures.
The money will also be given for implementing a20program supporting
small and mid-scale businesses. Armenia will implement this program in
cooperation with International Bank for Reconstruction and Development.
Katsu said that the money will also be spent for studies in geothermal
energy area.
According to the press office of the World Bank, three IDA programs
will be submitted to the WB Directorial Board by late February.
The programs target rural roads ($25 million). Besides, they include
extra financing for the third program of Social Investment Fund ($8
million) and additional financing of the program for developing rural
companies ($2 million).
The program supporting small and mid-scale businesses ($50 million)
and the geothermal program ($1.5 million) are included in the four-year
program as well.
The World Bank has extended credits totaling $1.1 billion under 50
programs since it began cooperate with Armenia in 1992.