Yerevan /Mediamax/. Ministry of Finance of Armenia and the World Bank (WB) signed an agreement on mitigating consequences of the global crisis.

Mediamax reports that, upon conclusion of the document signing ceremony, Minister of Finance of Armenia Tigran Davtyan stated that within the framework of the agreement, WB will provide Armenia with a loan at the sum of $85mln to realize four projects, which will help mitigate the consequences of the global economic crisis. According to him, the agreement also provides for allocation of a grant by the Global Environmental Fund (GEF, structure of WB) for developing hot spring energy in Armenia.

Head of WB Yerevan Office Aristomene Varoudakis, in his turn, noted that the given means were provided to Armenia in operative order due to close cooperation with the organization. He expressed hope that realization of the given projects will allow in the course of the nearest months creating new workplaces and improving the life level of the republic’s population.

The loan for the three projects will be provided under conditions of International Development Association (IDA, WB structure) for the term of 20 years with 10 years’ period of grace. Within the framework of the agreement, a project on repairing vitally important highways ($25mln), additional funding for the Social Investment Fund ($8mln) and additional funding for the Program for Promoting Small and Medium Farming Economies ($2mln) will be realized. The fourth project is assessed at $50mln. The means will be directed to funding a Program for Small and Medium Enterprises. The given project is for the first time funded in Armenia by International Bank for Reconstruction and Development (IBRD, WB structure). The loan is provided for the term of 26.5 years with the period of grace of 5 years. 

Since 1992, WB has provided Armenia with loans at the sum of $1.162bln. Today, 16 WB programs at the volume of $94mln are in the process of realization.