YEREVAN, NOVEMBER 19, NOYAN TAPAN. With the foundation of the Yerevan Office of the Asian Development Bank (ADB), a new page opens in cooperation between the ADB and Armenia. Armenia joined ADB three years ago, after which agreements on credit assistance of the total amount of 83 million USD in three strategic directions have been signed with the Armenian government. The bank is prepared to provide concession credits of 140 million USD to Armenian government in the next two years for implementation of a number of projects. The President of the ADB Haruhiko Kuroda stated this at the opening ceremony of the ADB Office in Yerevan on November 18. 67 countries are ADB members, and the bank has offices in 27 of these countries. In the words of H. Kuroda, in recent years the Armenian government has conducted a sound macroeconomic policy. It has contributed to an impressive economic growth of the country, which is a pledge of future success in cooperation with ADB. "However, in parallel with this progress, Armenia is facing new challenges to its development, and we are pleased with the fact that the Armenian government expressed a willingness to overcome these challenges and deepen the process of reforms," H. Kuroda stated. According to him, the concession credits to be allocated by ADB to Armenia will be spent, in particular, on several short-term programs, including the creation of a transport corridor through Armenia, the improvement of governance, and the development of the banking and non-banking sectors. "We will assist so that the economic growth rates will not slow down," H. Kuroda underlined. In the opinion of Armenian Prime Minister Tigran Sargsyan, the ADB Office in Yerevan opens just in time as the bank's mission is help the Armenian authorities to overcome the existing challenges and increase the resistibility of Armenian economy. "We attach importance not only to financial resources to be allocated for implementation of projects in Armenia but also to the technical assistance, experience and knowledge accumulated by ADB," the prime minister pointed out. He added that the main programs on cooperation between the bank and Armenia were approved, ther implementation has begun, which will become a great stimulus for creating a favorable climate for business development and Armenian GDP's growth in 2009. As regards the programs to be implemented jointly with ADB, T. Sargsyan noted that the improvement of rural roads is of special importance in terms of indentifying the economic potential of Armenian regions. The implementation of such credit programs as development of the water supply systems, as well as strategic projects on creation of an e-government system, improvement of the business climate and formation of free economic zones will have a considerable impact on Armenian economy and allow the country to reduce the consequences of the global economic crisis to a minimum. It was also considered important to create, within the framework of ADB programs, an opportunity of obtaining additional funds for small and medium enterprises in Armenia. During a press conference held following the opening ceremony, T. Sargsyan explained that the underdevelopment of infrastructures is one of the weaknesses of the Armenian economy, while ADB has the necessary experience and opportunities to help Armenia in this problem. In his words, it is no accident that the first program implemented in Armenia with ADB resources is the project on development of rural motorways and the water supply systems of small towns. It was mentioned that ADB carried out programs on introduction of e-government systems in South Korea, Singapore and Malaysia. The speaker attached importance to ADB's participation in the project of constructing the Armenia-Iran transit railway and a parallel motorway. During the opening ceremony of the ADB Office in Yerevan, H. Kuroda and the RA minister of economy Nerses Yeritsian signed a new agreement between ADB and Armenian government, by which the bank will provide an additional loan to Armenia. According to N. Yeritsian, the loan will amount to SDR 11 million at IMF. This money will be used for the improvement of motorways in 5 marzes (provinces) adjacent to Ararat Valley and the development of water supply systems in Vayots Dzor marz. He said that the additional loan was provided to make up for the loss of funds under the previous credit program because of currency fluctuations.

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