Aristomene Varoudakis

YEREVAN (ARKA, Yerevan Report), June 18–Aristomene Varoudakis, the head of World Bank Yerevan Office, said today the World Bank will provide Armenia with $424 million worth of assistance before the end of the first quarter of 2011.

Additionally, he said that Armenia’s full-year GDP growth may amount to 4-5 percent this year.

Regarding the inflation rate, Mr. Varoudakis said it will keep on growing, although it will be depending on external factors, like oil and food prices as well as on changing exchange rate of the national currency, the dram. This statement oddly contradicts a recent report from the Central Bank of Armenia claiming that the rate of inflation in Armenia keeps slowing down.

Overall the World Bank has committed to provide Armenia with $550 million aid in 2009-2012. At this point it has disbursed already $270 million to finance various projects in Armenia.

Speaking at a news conference today, Varoudakis said six more projects with a total budget of $154 million were being elaborated and would be submitted to World Bank executive directors board approval late this year or early next year.

He said these projects have been designed to repair rural life-line roads, renovate and furnish regional hospitals with equipment and support agriculture, energy and IT sectors.

He said the bank will provide Armenia with $126 million within 2011-2012. According to him the $424 million commitment is equal to what Armenia received from the World Bank in 2000-2008.