Armenian parliament ratifies IBRD $50 million loan agreement
23.12.2016,
15:30
An extraordinary meeting of the Armenian parliament on Friday has ratified an agreement signed with the International Bank for Reconstruction and Development (IBRD) on December 9, 2016 whereby IBRD will provide Armenia with a $50 million.
YEREVAN, December 23. /ARKA/. An extraordinary meeting of the Armenian parliament on Friday has ratified an agreement signed with the International Bank for Reconstruction and Development (IBRD) on December 9, 2016 whereby IBRD will provide Armenia with a $50 million.
The loan will support the government’s reforms program across key economic areas, promoting fiscal, social and environmental sustainability and strengthening competitiveness, WB said earlier this month. This is the last operation in a programmatic series of four Development Policy Financing (DPF) programs for Armenia spanning 2013-2016.
According to WB, the first pillar of this operation includes measures for improving the financial sustainability of key sectors and the efficiency of social protection programs while enhancing environmental safeguards in the mining industry, which accounts for over half of Armenia’s exports. The second pillar, on improving competitiveness, focuses on strengthening the business environment and improving trade facilitation and connectivity, as well as access to credit.
Key milestones supported by this operation include the enactment of the Unified Tax Code, which will address shortcomings in the tax system, and increase the fiscal space for growth-enhancing capital investment and social spending. It includes measures to enhance revenues, improve the efficiency, transparency and equity of the tax system, and to strengthen tax administration.
The program supports several reforms aimed at enhancing environmental safeguard legislation. In particular, the amendments to the Mining Code to align with the Law on Waste Management will reduce the negative environmental impacts from mining operations and preserve the asset endowment for households in rural areas, which often depend on income from agricultural activity.
Another focus area of this operation is improvement in the business environment, through enactment of the amendments to the Law on Bankruptcy, which strikes a better balance between creditors’ and debtors’ rights. The operation also supports increasing transparency and reliability of the financial sector by enacting regulations to ensure disclosure of beneficial ownership of financial institutions and groups. The Fourth DPF, totaling US$50 million, is an IBRD loan with a fixed spread with a 14.5-year grace period and repayment of 25 years.
Since joining the World Bank in 1992 and IDA in 1993, total IDA and IBRD commitments to Armenia amount to US$2.3 billion. -0-
The loan will support the government’s reforms program across key economic areas, promoting fiscal, social and environmental sustainability and strengthening competitiveness, WB said earlier this month. This is the last operation in a programmatic series of four Development Policy Financing (DPF) programs for Armenia spanning 2013-2016.
According to WB, the first pillar of this operation includes measures for improving the financial sustainability of key sectors and the efficiency of social protection programs while enhancing environmental safeguards in the mining industry, which accounts for over half of Armenia’s exports. The second pillar, on improving competitiveness, focuses on strengthening the business environment and improving trade facilitation and connectivity, as well as access to credit.
Key milestones supported by this operation include the enactment of the Unified Tax Code, which will address shortcomings in the tax system, and increase the fiscal space for growth-enhancing capital investment and social spending. It includes measures to enhance revenues, improve the efficiency, transparency and equity of the tax system, and to strengthen tax administration.
The program supports several reforms aimed at enhancing environmental safeguard legislation. In particular, the amendments to the Mining Code to align with the Law on Waste Management will reduce the negative environmental impacts from mining operations and preserve the asset endowment for households in rural areas, which often depend on income from agricultural activity.
Another focus area of this operation is improvement in the business environment, through enactment of the amendments to the Law on Bankruptcy, which strikes a better balance between creditors’ and debtors’ rights. The operation also supports increasing transparency and reliability of the financial sector by enacting regulations to ensure disclosure of beneficial ownership of financial institutions and groups. The Fourth DPF, totaling US$50 million, is an IBRD loan with a fixed spread with a 14.5-year grace period and repayment of 25 years.
Since joining the World Bank in 1992 and IDA in 1993, total IDA and IBRD commitments to Armenia amount to US$2.3 billion. -0-
