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INTERNATIONAL FINANCIAL INSTITUTIONS LOOK TO CONTINUE COOPERATION WITH ARMENIA DESPITE ITS CUSTOMS UNION ORIENTATION
Analysis | 20.09.13 | 18:57
NAZIK ARMENAKYAN
ArmeniaNow
By Naira Hayrumyan
ArmeniaNow correspondent
After Armenia's announcement of its decision to join the Customs
Union, the international financial organizations that have provided
assistance and credits to Armenia have been trying to clarify prospects
for further cooperation.
Although immediately after the announcement by President Serzh
Sargsyan on September 3 there were fears that Western foundations
and banks will stop cooperation with Armenia, some two weeks after
the event it became clear that a political decision has been made to
continue and even build up this cooperation. Over the past two days
at least three major financial partners of Armenia declared about
the continuation of their programs.
The United States Agency for International Development (USAID) will
provide financial aid of $43 million to Armenia, said Prime Minister
Tigran Sargsyan. For the purpose of establishing a competitive and
diversified private sector, by September 2017 USAID will provide $10.4
million to the Armenian government. The prime minister also said
that the U.S. has provided $1 million in additional aid to Armenia
for agricultural registration.
The mission of the International Monetary Fund (IMF), which arrived in
Yerevan on September 5, made progress in discussions with the Armenian
authorities on the action plan for the current and subsequent years,
the statement by the head of the IMF Armenia mission Mark Horton says.
Based on the results of the inspections Armenia will be granted
an additional funding of $84 million. Thus, the total issuance in
accordance with arrangements will amount to $407.2 million.
The new head of the Yerevan office of the European Bank for
Reconstruction and Development (EBRD) Mark Davis is also going to
make an effort to continue the implementation of the Bank's programs
to promote private sector development in Armenia. To this day, the
EBRD has invested over 656 million euros (about $888 million) in
120 programs. In 2012, the Bank signed an agreement in Armenia on 15
programs for a total amount of 94 million euros (about $127 million).
In an interview with RFE/RL's Armenian Service U.S. Ambassador to
Armenia John Heffern said that support for reforms in Armenia will
be continued and that the Customs Union does not prevent it. European
officials have also said that "the EU will not abandon Armenia." And
the fact that financial institutions have decided to continue working
with Armenia suggests that in Armenia, parallel to the "political"
accession to the Customs Union, a closer "economic" integration with
the West may be launched.
The opening in Armenia of the office of one of the world's most
renowned IT companies, Oracle, could mean that Washington intends
to launch the second stage of "diversification" of Armenia. And this
company certainly will not be the last.
http://armenianow.com/commentary/analysis/48622/armenia_customs_union_analysis
From: Baghdasarian
Analysis | 20.09.13 | 18:57
NAZIK ARMENAKYAN
ArmeniaNow
By Naira Hayrumyan
ArmeniaNow correspondent
After Armenia's announcement of its decision to join the Customs
Union, the international financial organizations that have provided
assistance and credits to Armenia have been trying to clarify prospects
for further cooperation.
Although immediately after the announcement by President Serzh
Sargsyan on September 3 there were fears that Western foundations
and banks will stop cooperation with Armenia, some two weeks after
the event it became clear that a political decision has been made to
continue and even build up this cooperation. Over the past two days
at least three major financial partners of Armenia declared about
the continuation of their programs.
The United States Agency for International Development (USAID) will
provide financial aid of $43 million to Armenia, said Prime Minister
Tigran Sargsyan. For the purpose of establishing a competitive and
diversified private sector, by September 2017 USAID will provide $10.4
million to the Armenian government. The prime minister also said
that the U.S. has provided $1 million in additional aid to Armenia
for agricultural registration.
The mission of the International Monetary Fund (IMF), which arrived in
Yerevan on September 5, made progress in discussions with the Armenian
authorities on the action plan for the current and subsequent years,
the statement by the head of the IMF Armenia mission Mark Horton says.
Based on the results of the inspections Armenia will be granted
an additional funding of $84 million. Thus, the total issuance in
accordance with arrangements will amount to $407.2 million.
The new head of the Yerevan office of the European Bank for
Reconstruction and Development (EBRD) Mark Davis is also going to
make an effort to continue the implementation of the Bank's programs
to promote private sector development in Armenia. To this day, the
EBRD has invested over 656 million euros (about $888 million) in
120 programs. In 2012, the Bank signed an agreement in Armenia on 15
programs for a total amount of 94 million euros (about $127 million).
In an interview with RFE/RL's Armenian Service U.S. Ambassador to
Armenia John Heffern said that support for reforms in Armenia will
be continued and that the Customs Union does not prevent it. European
officials have also said that "the EU will not abandon Armenia." And
the fact that financial institutions have decided to continue working
with Armenia suggests that in Armenia, parallel to the "political"
accession to the Customs Union, a closer "economic" integration with
the West may be launched.
The opening in Armenia of the office of one of the world's most
renowned IT companies, Oracle, could mean that Washington intends
to launch the second stage of "diversification" of Armenia. And this
company certainly will not be the last.
http://armenianow.com/commentary/analysis/48622/armenia_customs_union_analysis
From: Baghdasarian