The World Bank is ready to render assistance to the regional projects in the South Caucasus

The World Bank is ready to render assistance to the regional projects in the South Caucasus, WB Vice-President for Europe and Central Asia Johannes Linn said following the first working meeting of the WB representatives to Armenia, Azerbaijan and Georgia. He added that the promotion of the projects in closely linked with the ensuring of stability in the region. The WB is also ready to invest capital in the restoration of war-damaged territories provided the conflicts are settled and peace is established in the region, Linn said. Currently, the WB is financing the repair of the section of the highway bordering on Armenia. Linn pointed out that in Armenia, like in other Transcaucasian countries, an increase of macroeconomic indices can be observed. But, he said, the results are not reflected on the population's socio-economic conditions. According to him, it is accounted for by a number of external and internal causes: blockade, limited natural resources, geopolitical situation, the financial crisis in Russia in 1998. Also, a policy of global reforms is under implementation in Armenia, which requires time. According to Linn, the Armenian government is following the course of reforms and certain improvement in the investment climate and private sector development can be observed. During the visit, the WB delegation held meetings with President Robert Kocharian, Prime Minister Andranik Margarian, government members, businessmen, scientists and public figures. Responding to Noyan Tapan's question concerning President George Bush's proposal for increasing the share of grants in the funds provided to the developing countries, the WB vice-president said that the issue is currently under consideration, but no final decision has yet been made. As to Armenia's being included in the list of the countries whose debts to the WB and IMF are to be written off, Linn said that this issue requires a detailed study of the situation, and, according to him, the situation in Armenia is not so critical as in other countries.