WB to Allocate Armenia $20 Million Credit within Poverty Reduction Program

PanARMENIAN.Net - Armenian Minister of Finance and Economy Vartan Khachatrian and Acting Resident Representative of the World Bank in Armenia Naira Melkumian signed today an agreement on the Second Poverty Reduction Support Credit (PRSC) for Armenia totaling in US$ 20 million that was approved by the World Bank on January 20.The second project is designed around four themes and targeted to support the implementation of the government's Poverty Reduction Strategy Program (PRSP). The International Development Association (IDA) Credit will assist the government in sharpening competition and entrenching property rights, mitigating social and environmental risks, consolidating macroeconomic discipline and modernizing the rural economy. The project will also be supported by a EURO 4.7 million co-financing Grant from the Netherlands Government, which together with PRSC II proceeds will support the State budget. The Credit will be allocated to Armenia on standard IDA terms, including 40 years maturity and a 10-year grace period. Since joining the World Bank in 1992 and IDA in 1993, the commitments to Armenia total approximately US $916 million for 41 operations.