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Yerevan, April 25, 2024 - The World Bank’s Board of Executive Directors approved a Development Policy Operation (DPO) in the amount of $116 million equivalent for Armenia to enable reforms aimed at promoting green, resilient and inclusive development. The DPO includes loan financing from the International Bank for Reconstruction and Development (IBRD) in the amount of EUR 92.3 million ($100 million equivalent) and a grant from the Global Concessional Financing Facility (GCFF) in the amount of $16 million.
This budget support will help the Government of Armenia to build climate resilience and reduce vulnerabilities to future shocks.
“This development policy operation supports a package of reforms designed to improve social equity, strengthen human capital, support the emergence of stronger institutions, and promote climate mitigation and adaptation in Armenia,” said Carolin Geginat, World Bank Country Manager for Armenia.
The operation supports the Government’s five-year action plan for 2021-2026. It includes actions that will fortify anti-corruption measures by implementing a robust framework with a whistleblowing system and gift monitoring mechanism for public servants. Further, it is aligned with the Paris Agreement. Specifically, the operation will support the government’s reforms in the following areas:
- Fostering climate change mitigation and adaptation and improving the regulatory framework for environmental management;
- Enhancing equity and promoting human capital development;
- Strengthening the anti-corruption framework and improving justice sector efficiency.
Since starting its operations in Armenia in 1992, the World Bank has provided around $2.7 billion from IBRD, International Development Association (IDA), and various trust funds. Armenia became a donor to IDA in 2023. The World Bank is committed to continuing its support to Armenia in its development path for reducing poverty on livable planet.
The GCFF is Financial Intermediary Fund, established in 2016 to provide concessional financing to eligible middle-income countries. The GCFF contributions made available to Armenia under this operation were provided by the Governments of the Netherlands and the United States of America.
Sona Panajyan
Hasmik Soghomonyan
About The World Bank
The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global challenges. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
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