ArmInfo.The World Bank will provide a $26.5 million loan to Armenia to improve the public administration system. On February 23, the Government of Armenia approved in a non-discussable manner the proposal "On concluding a loan agreement on the 4th Public Sector Modernization Project between the Republic of Armenia and the International Bank for Reconstruction and Development."
According to the source, the Armenian government considered it expedient to develop and implement the 4th Public Sector Modernization Project with the assistance of the World Bank in order to ensure the continuity of the achievements of the previous three public sector modernization programs. The importance of this program was confirmed in a letter from the Minister of Finance of the Republic of Armenia to the World Bank dated November 1, 2021.
The goal of the 4th Public Sector Modernization Project is to promote the process of modernizing the public administration system through continuous civil service reforms, digitalization of services provided by the state and local governments, and the introduction of selected e-government systems. "The proposed project is based on the achievements of the previous three projects implemented with World Bank support to promote a nationwide approach to public sector modernization GovTech, to modernize the functions and services of the public sector in Armenia. As a result of the successful implementation of the program, it is expected to increase the efficiency of selected public services and improve their accessibility for business and citizens.
Thus, as a result of the modernization of a wide range of public services, it is planned to increase the efficiency of public services provided, their accessibility for businesses and citizens, contributing to inclusive economic growth.
The draft loan agreement "The 4th Public Sector Modernization Project " between the Republic of Armenia and the International Bank for Reconstruction and Development creates additional financial obligations for the state budget of the Republic of Armenia," the document reads.
It is noted that paragraph 2.01 of Article 2 of the Agreement provides that the IBRD agrees to provide Armenia with a loan in the amount of 26.5 million euros. The loan repayment period is 25 years, of which the grace period is 14.5 years, the annual interest rate on the loan is the base rate (EURIBOR) + floating spread. The unpaid loan amount is calculated at the rate of 0.25% per annum 60 days after the signing of the agreement, and is paid every six months, simultaneously with the payment of interest. There is a one- time fee of 0.25% of the loan amount, which must be paid no later than 60 days after the entry into force of the agreement.
