The World Bank forecasts 9-11% economic decline and 3% inflation in Armenia. Today Aristomene Varoudakis, Head of WB Office in Yerevan, stated that economy is stabilizing, the construction rates in the country being evidence thereof.

According to Varoudakis, the downturn will be not be so severe as forecasted. The WB’s US $30mln loan is intended for the irrigation system in Armenia. The loan will help finance the costs associated with the rehabilitation of the two main irrigation canals of Armavir and Talin and ensure irrigation of 7,300 hectares. The project is aimed at creating 9,000 jobs. The loan maturity is 27 years, grace period being 5 years.