Tuesday, April 11 2023 14:40

ArmInfo. Today, Armenia became an official donor to the World Bank's International Development Association (IDA) with a paid-in contribution of $1 million, the WB  Armenian office reports.

According to the source, the decision was made official at a ceremony  in Washington, D.C., during which Mher Grigoryan, Deputy Prime  Minister of Armenia, handed over the signed IDA Instrument of  Commitment to Akihiko Nishio, World Bank Vice President for  Development Finance and Antonella Bassani, the Regional Vice  President of the World Bank. Armenia ratified the Government Act to  become an IDA donor on March 10, 2023, only nine years after  graduating from being an IDA recipient itself and four years after  attaining upper-middle income (MIC) country status. The decision to  join was made in the fall of 2022, when Armenia and the World Bank  celebrated their 30 years of partnership in Yerevan.  

"As an upper middle-income country Armenia is no longer eligible for  International Development Association's support. We think it is time  for Armenia to start helping countries in need of support. This is a  wonderful opportunity for Armenia to help low-income countries, on  the one hand, and to express gratitude for similar support received  in the past, on the other. With this step, Armenia once again, both  reaffirms the effectiveness of mutual cooperation with the World  Bank, as well as its agreement with the policy implemented by IDA,"  said Mher Grigoryan, Armenia's Deputy Prime Minister.  

The World Bank's engagement in Armenia started in 1992, one year  after the country became independent, with the objective of  supporting Armenia's transition to a market economy. The early  engagement was primarily through IDA credits and stabilization  programs, supporting transition reforms. Since then, the World Bank  has been supporting institutional reforms and infrastructure  investments in a wide range of sectors such as energy, water, and  roads, as well as in education, health and social protection.  

"Armenia has undergone a profound economic transformation since the  World Bank started its engagement in the country, allowing it to  graduate from IDA recipient to IDA donor in the span of 30 years,"  said Antonella Bassani, World Bank Vice President for Europe, and  Central Asia. "Systematic reforms have helped sustain stable economic  growth, thereby improving the lives and livelihoods of many people  across the country. In the process Armenia has accumulated important  knowledge on how to reform which can be of great value to IDA  recipients today." 

Established in 1960, IDA is the World Bank's main instrument for  assisting the world's poorest countries through providing grants and  zero to low-interest loans to promote economic development, increase  productivity and thus raise standards of living across the globe.  Armenia joined IDA in 1993 and, since then, as a beneficiary, has  received $ 1.4 billion in financial support.  "Armenia joins a global  community of donors that enables IDA to provide concessional  financing to the world's 75 poorest and most vulnerable countries to  address their development needs," said Akihiko Nishio, World Bank  Vice President for Development Finance, who oversees IDA. "I commend  Armenia for this exemplary step of being an IDA graduate that now  wants to give back - a show of global solidarity and international  cooperation." 

Since joining the World Bank in 1992 and IDA in 1993, World Bank  commitments to Armenia have totaled approximately $ 2.6 billion,  supporting 78 projects in areas targeted at boosting small and  medium-sized enterprise competitiveness, enhancing human capital and  equity, as well as sustainably managing environmental and natural  resources.  The World Bank remains committed to being a trusted  partner to Armenia and will continue supporting the country on its  transformative journey towards a more competitive, green, and digital  economy that provides better jobs and opportunities for all its  people.