YEREVAN, JULY 3, NOYAN TAPAN. The World Bank's Board of Executive Directors on July 2 approved the first Development Policy Operation (DPO) of 60 million USD for Armenia. The maturity period of the credit is 20 years, its grace period is 10 years. The Head of the World Bank Armenia Office Aristomene Varudakis said at the July 3 press conference that under conditions of the global economic crisis, the Operation supports Armenia's two strategic objectives: to reduce vulnerability to the current shocks and to improve competitiveness, which is a key precondition for post-crisis recovery and medium-term growth. According to him, the DPO's goal is to help Armenia reduce vulnerability by supporting such measures as increasing the financing for social security network programs, including family allowances and pensions. Besides, the DPO will contribute to restoration of the financing of priority programs for the vulnerable groups in health care sphere by deepening reforms on service provision, improving special and preschool education, and strengthening the sustainable use of energy and natural resources through more efficient assessment of the environmental impact. A. Varudakis said that the DPO will also help strengthen control of the banking system and ensure liquidity, reduce cost of enterprises' registration, and adopt a program of measures for priority reforms of the State Revenue Committee.

---