World Bank Disburses US$75 Million For Armenia Policy Reform Program

WORLD BANK DISBURSES US$75 MILLION FOR ARMENIA POLICY REFORM PROGRAM

16:29 23/12/2014 >> SOCIETY

The World Bank today disbursed the full amount of the US$75 million
Second Development Policy Operation (DPO) for Armenia to support a
wide range of critical reforms under implementation by the Government
of Armenia, the press service of the World Bank Yerevan Office reports.

The World Bank remains fully committed to helping the country as it
adjusts to the volatile regional and global economic developments
and builds a stronger economy that creates jobs, which is Armenia’s
long-term development challenge.

“The regional dynamics that are affecting Armenia reinforce how
important it is for us to support economic growth and sustainability
in the medium- and long-term,” says Laura E. Bailey, World Bank Country
Manager for Armenia. “At the same time, as international partners work
with the national authorities in dealing with the current short-term
volatility, we continue to focus on important structural changes that
will allow Armenia to deal with the realities in the world economy
and be more competitive, which is what needs to happen to create jobs.”

The Operation supports reform measures implemented by the Government
under five main objectives.

1) Strengthening the business environment through the reduction
of inspections burdening businesses, implementation of the “single
window approach” for customs clearance of goods, and creation of a
new institutional structure for the oversight of the aviation sector
to increase transparency and improve accountability.

2) Improving access to credit with measures to create a modern
framework for secured transactions, which will allow the use of
moveable assets as collateral for better access to finance.

3) Improving efficiency and transparency of the civil service with a
stronger performance evaluation system and broader use of e-government
systems.

4) Expanding social protection by extending the coverage of the waiver
of co-payments in medical institutions to the households covered by
the Family Benefits Program.

5) Improving fiscal space and the management of public infrastructure
and environmental resources through reporting estimates of the revenue
impacts of major tax expenditures, implementation of an Action Plan
on Drinking Water Sector Reforms, and adoption of legislative and
regulatory improvements that strengthen environmental and social
(E&S) guidelines in the mining sector.

“Our commitment to the people and government of Armenia includes
supporting this package of reforms, which will help the Armenian
economy make the shift from an unsustainable reliance on inflows
towards export-oriented growth and a higher rate of job creation,”
says Ms. Bailey.

The Second DPO in the total amount of US$75 million is an IBRD
flexible loan, with a variable spread and a 14.5-year grace period,
and repayment of over 25 years.

Since joining the World Bank Group in 1992, the World Bank has provided
a total of more than US$2 billion in IDA and IBRD commitments.

From: Emil Lazarian | Ararat NewsPress