YEREVAN (Noyan Tapan)–The World Bank intends to consider four credit programs for Armenia: SAC-4–projects of judicial reforms–private sector development and an environmental project. The projects are expected to be worth a total of $70 million–WB Resident Representative to Armenia Owaise Saadat told a news conference.
He laid special emphasis on the environment project–as a WB delegation is expected to arrive in Yerevan on June 14 in connection with the implementation of this project. Saadat said that the project is supposed to contain the solutions to environmental problems characteristic of Armenia: forest preservation–water resources–prevention of aftermath of extensive land utilization. He also said that the main points of the projects were discussed with the new minister of nature protection of Armenia–Murad Muradian and were supported by him.
The World Bank has decided to increase its share of participation in the credit programs of the Armenian government from 80 to 90 percent thereby decreasing the government’s share. At a press conference on June 9–WB Resident Representative Owaise Saadat said that the decision was a response to Armenia’s difficulties with the budget. The decision concerns programs immediately targeting the vulnerable strata of the population. These include programs in public health–education–judicial reforms–communal development. Another major decision of the WB is to extend the maturity of Armenia’s loans from 35 to 40 years. Saadat emphasized that the position of the WB gives reasons to hope that the government of Armenia will fulfill its commitmen’s as to the paymen’s.
He added that the WB cannot finance cooperative programs unilaterally. The cumulative debt of the Armenian government on 15 programs has now reached $2.1 million.