WB to provide EUR 45.8 million loan to Armenia for reform sustainability

YEREVAN, November 22. /ARKA/. The World Bank’s Board of Executive Directors approved Thursday a new, EUR 45.8 million (US $50 million) loan for the Armenia Governance Development Policy Operation (DPO), a budget support operation, the press office of the World Bank reports.

The operation supports the government’s actions to strengthen economic, fiscal, and public sector governance by improving pro-competition, pro-trade and streamlined quality regulations and processes, enhancing efficiency of revenue mobilization and public investment and strengthening anti-corruption initiatives and the performance of the justice sector and the civil service.

The WB says in its news release that the new lending comes on the heels of the widespread protests against weak governance and corruption in 2018 that culminated with the peaceful and historic Velvet Revolution. The newly elected government, armed with a strong mandate for change, has put forward an ambitious five-year reform program, which aims to improve competitiveness and spur economic growth while meeting the people’s demands for good governance, greater transparency, accountability and effective public services.

“This operation prioritizes core governance reforms, initial steps which set the foundations for longer-term reforms in a number of areas,” Sylvie Bossoutrot, World Bank Country Manager for Armenia, is quoted in the WB’s news release. “It is anchored in the 2019–23 government program and the Bank’s Country Partnership Framework for 2019–23, which highlight governance as a cross-cutting foundation. It focuses on those areas where strategic relevance, impact, and reform sustainability are high and where it can support building blocks for deeper change.”

Market competition, for example, is targeted through interventions to introduce a state aid control framework, develop a more transparent and rule-based tax administration system, strengthen the quality and efficiency of laws and regulations, and institute efficient and risk-based custom management.

Fiscal consolidation and expenditure efficiency are supported by measures to improve tax administration and establish a sounder public investment management system. Improved public sector governance would be strengthened by supporting a package of anti-corruption measures and enhancing the performance of the justice sector and civil service.

The EUR 45.8 million (about US $50 million) is an IBRD loan of fixed spread, with a 14.5-year grace period and a total repayment term of 25.5 years.

Since joining the World Bank in 1992 and IDA in 1993, commitments to Armenia have totaled approximately US $2,429,734 million. -0—

spot_img

POPULAR

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (September 28 – October 4)

The week's financial agenda combined discussions on reforms with the IMF, supervisory measures by the Central Bank of Armenia (CBA), and preparations for budget financing. The banking and corporate segments of the capital market saw the completion of bond placements.

Armenian Government Approves 2027 State Budget Draft

At its meeting on Thursday, the Armenian government approved the draft law "On the State Budget of the Republic of Armenia for 2027," which will be submitted to the National Assembly in accordance with established procedure.

Unibank Joins the Armenian Solar Energy Association

Unibank has joined the Armenian Solar Energy Association (ASEA), which brings together companies in the renewable energy sector.

Exchange rates of the euro, ruble, and dollar against the Armenian dram continued to decline – Central Bank of Armenia data

The average market exchange rate of the US dollar against the Armenian dram, established on Armenia's currency market, fell by 0.74 points on October 5 compared to October 2, settling at 361.81 drams.

Team Holding Raises Approximately $35 Million on the Armenian Capital Market via Bond Issuance

Team Holding has completed its corporate bond public offering program in Armenia, raising funds equivalent to approximately $35 million.

LATEST NEWS

spot_imgspot_imgspot_img