World bank to lend Armenia $32.7 mln for agriculture
YEREVAN. June 23 (Interfax) - The World Bank board has approved a $32.67 million loan for Armenia, the World Bank office in Armenia reported.
The money will be used in agriculture, especially to improve pasture and grazing condition in 100 villages. The credit program aims to increase agriculture production by creating cooperatives and mergers and to ease the entry of products to the market by strengthening ties with manufacturing companies.
The head of the World Bank office in Yerevan, Jean-Michel Happi, said the program is to involve 50,000 people, who will join farming cooperatives. Cooperatives will be set up in 100 villages to share pasture, each of which might obtain grants of $20,000 to create the necessary infrastructure.
The program will cost $42.67 million, of which $10 million is government and local administration funds.
The World Bank will provide $9.67 million through an International Development Association line of credit, of which $3.8 million will be at 1.25% per annum for 25 years with a grace period of five years, and $5.87 million will be at 1.4% p.a., with the same term and grace period. The other $23 million will be allocated via the International Bank for Reconstruction and development at a floating rate for 25 years with a grace period of 10 years.
The World Bank has allocated loans of over $1.87 billion to Armenia since 1993.