Tuesday, 18 November 2008
RA Prime Minister Tigran Sargsyan received World Bank Yerevan office representatives, led by head of office Aristomene Varudakis.
The Prime Minister advised that the FY 2009 State budget law is out, the National Assembly has been presented with the government action plan for counteracting the global financial crisis, which prompts for comprehensive action. As assured by Tigran Sargsyan, this approach was highlighted by World Bank experts during his recent contacts in Washington. In the words of the Prime Minister, although Armenia was able to withstand the first wave of the crisis, nevertheless like many other governments facing the second tide, Armenia must design steps to that effect.
Tigran Sargsyan suggested the Bank representatives to discuss with their management the possibility for an expedited lending of additional 250 million US dollars to cover the needs of small and medium-size business in Armenia. The proposal was made considering that under the World Bank rules of procedure, decision-making work will not be complete before next spring. The Prime Minister stressed that according to an earlier assessment carried out by the Deutsche KFW Bank, Armenia's SME funding program was deemed to be the best such program in the world. Based on the above, the government wishes to give effect to the program through a sharp increase in borrowed funds as currently there is a great demand in such resources in Armenia. Armenian banks are in a position and stand ready to make sizeable investments in this sector. Tigran Sargsyan further advised that account taken of the Washington arrangements, earlier today he sent corresponding letters to the deputy director and regional director of the Bank in the hope of possibly soonest realization of the program.
In conclusion, the Prime Minister said talks are underway with international financial institutions concerning the commitment of the necessary funds.
