Contacts: In Yerevan: Vigen Sargsyan (374-10) 524-884, vsargsyan@worldbank.org In Washington: Steven Jouy (202) 473-4215, sjouy@worldbank.org WASHINGTON, March 8, 2007 – The World Bank Board of Directors today approved a US$28 million Poverty Reduction Support Credit (PRSC) for Armenia. This is the third project under a four-year World Bank program that will assist the government with the implementation of its Poverty Reduction Strategy Program (PRSP). The credit will help sustain the country’s economic growth and poverty reduction efforts by providing budget support and moving ahead with the high priority reform agenda identified by the PRSP. The Armenian authorities are currently completing a review of the PRSP in close consultation with civil society and donors. During the next phase of the PRSP process, the government will prepare an extensive analysis of the causes of poverty and identify the short and long term challenges on the road to greater economic growth. While growth has only recently begun lowering unemployment levels in the country, currently standing at nearly one-third of the labor force, the nascent rise in employment levels has had so far limited impact on the income of many households, particularly in the less productive sectors, such as agriculture. “The credit will support measures to strengthen public management and governance, expand the public provision of basic education and health, and improve equitability of access to those services, especially for the poor,” said Saumya Mitra, head of the World Bank team designing the project. “It will also expand employment opportunities and raise incomes by strengthening the business environment for private sector development and improve competitiveness.” The credit is provided on ‘hardened’ IDA terms with a maturity of 20 years, and a grace period of 10 years. Armenia joined the World Bank in 1992 and IDA in 1993, and the country has been in the process of graduating from IDA since July 1, 2006. Commitments to Armenia amount to approximately US$1.25 billion for 47 operations.
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