World Bank Delays Tranche Disbursement

YEREVAN (Armenpress)–A senior official of the World Bank Armenia office said that the second–$15 million tranche of the Banks’ SAC-4 credit will not be disbursed in the next two months.

Vigen Sarkisian–the head of the public relations department of the World Bank Armenia office said that the delay in the disbursement of the tranche was due to Armenia’s failure to meet its projected tax earnings for the third and fourth quarters.

The IMF said the tranche would be disbursed provided government officials improve tax collection methods and increase taxes in order to reach the projected amount. The $15 million tranche was supposed to be disbursed in September.

Sarkisian also said the World Bank would make its final decision on the allocation of the "floating" $20 million tranche next month. The World Bank agreed to allocate the "floating" tranche on the condition that the government successfully privatize four energy distributing networks–but unfortunately–the government was not been able to fulfill that condition thus far.

The total amount of SAC-4 credit is $50 million–the first $14 tranche was received in June. The government was depending on the credit from the World Bank to fill its budget gaps.

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