Friday, November 22 2019 19:58
Alina Hovhannisyan

WB approved new $50 mln loan on DPO program for Armenia 

WB approved new $50 mln loan on DPO program for Armenia 

ArmInfo. The World Bank's Board of Executive Directors approved today a new, EUR 45.8 million (US $50 million) loan for the Armenia Governance Development Policy  Operation (DPO), a budget support operation, the press service of the  WB informs.

According to the bank's press release the operation supports the  government's actions to strengthen economic, fiscal, and public  sector governance by: (i) improving pro-competition, pro- trade and  streamlined quality regulations and processes (ii) enhancing  efficiency of revenue mobilization and public investment; and (iii)  strengthening anti-corruption initiatives and the performance of the  justice sector and the civil service. 

The new lending comes on the heels of the widespread protests against  weak governance and corruption in 2018 that culminated with the  peaceful and historic "Velvet" Revolution. The newly elected  government, armed with a strong mandate for change, has put forward  an ambitious five- year reform program, which aims to improve  competitiveness and spur economic growth while meeting the people's  demands for good governance, greater transparency, accountability and  effective public services.

"This operation prioritizes core governance reforms, initial steps  which set the foundations for longer-term reforms in a number of  areas," says Sylvie Bossoutrot, World Bank Country Manager for  Armenia. "It is anchored in the 2019-23 government program and the  Bank's Country Partnership Framework for 2019-23, which highlight  governance as a cross-cutting foundation. It focuses on those areas  where strategic relevance, impact, and reform sustainability are high  and where it can support building blocks for deeper change."

Market competition, for example, is targeted through interventions to  introduce a state aid control framework, develop a more transparent  and rule-based tax administration system, strengthen the quality and  efficiency of laws and regulations, and institute efficient and  risk-based custom management. 

Fiscal consolidation and expenditure efficiency are supported by  measures to improve tax administration and establish a sounder public  investment management system. Improved public sector governance would  be strengthened by supporting a package of anti-corruption measures  and enhancing the performance of the justice sector and civil  service.

"A comprehensive assessment by the Bank identified the lack of a  state aid-control framework as one of the key impediments to healthy  competition in Armenia. Measures to promote competitive neutrality in  the granting of state aid and incentives have not yet been put in  place to level the playing field, foster market contestability, and  prevent previously informal advantages provided to some firms from  being replaced by formalized advantages," says Genevieve Boyreau,  World Bank Task Team Leader of the Project.

As part of the World Bank's global commitment to climate change  mitigation and adaptation, this operation will also support the  assessment of the climate change impact of new regulations, as part  of the implementation of a Regulatory Impact Assessment Framework. It  will thus enable policymakers to make decisions informed by  qualitative and quantitative assessment of the climate change impact  of each new regulation and mainstream climate change adaptation and  mitigation measures into legislative and regulatory packages. 

The EUR 45.8 million (about US $50 million) is an IBRD loan of fixed  spread, with a 14.5-year grace period and a total repayment term of  25.5 years.

Since joining the World Bank in 1992 and IDA in 1993, commitments to  Armenia have totaled approximately US $2,429,734 million.

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000