“Much more is to come as Brussels will be adding a larger amount over the coming weeks to be channelled through European Financial Institutions and Armenian commercial banks”. Andrea Wiktorin
168.am news and analysis portal addressed few questions to the Head of the EU Delegation to Armenia, Ambassador: H.E. Mrs. Andrea Wiktorin.
Below we are presenting our questions and amb. Wiktorini’s answers.
-How much money is foreseen to support Armenia for 2020 and 2021 based on the earlier planned budget, particularly the Partnership Priorities signed in 2017?
-The EU framework of cooperation is based on the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA), which was signed in November 2017 and entered into provisional application on 1 June 2018, and the EU-Armenia Partnership Priorities signed in February 2018. CEPA is a key tool for reform and modernization of Armenia in numerous areas.
The Single Support Framework SSF for Armenia for 2017-2020 lays the foundation for EU-Armenia financial cooperation and programming. EU assistance to Armenia was indicatively planned between an estimated minimum of €144 million and maximum of €176 million for the total period 2017-2020.
As a result, EU new budget allocations in 2017 for Armenia amounted to €34.5 million, while in 2018 and 2019 amounted to €46 million and €65 million respectively. This means that EU has basically doubled its annual development assistance to Armenia since 2017 and intends to maintain the same €65 million for 2020. As a total for the period 2017-2020, EU assistance will reach €210.5 million or an extra 20% over the initial SSF maximum estimate of €176 million mentioned above-.
It is important to note that all figures above do not reflect important additional resources channelled through Eastern Partnership regional programmes or through civil society organizations. It does not include either the EU blending instrument which allows mixing EU grants with European Financial Institutions soft loans, thus leveraging important support to Armenian public investments in energy, agriculture, transport, water…in hundreds of € millions over recent years.
As for assistance data projections for 2021 and beyond, these are not yet available as the European Commission is precisely these months negotiating with EU Member States the Multi-Annual Financial Framework MFF for the period 2021-2027.
-How much money has the EU added as a support to Armenia against COVID19 in 2020?
-The EUDel Press Release of April 8th announced € 92 million to support immediate and short-term needs in funds directed towards supplying medical devices and equipment, training for medical and laboratory staff, support to SMEs and business community, as well as social and humanitarian assistance to those affected by the coronavirus outbreak. Most of such amount reflects important reprogramming, restructuring efforts of our existing portfolio and pipeline, containing an initial € 4 million package as extra funds in response to covid19 health and humanitarian dimensions. Yet, much more is to come as Brussels will be adding a larger amount over the coming weeks to be channelled through European Financial Institutions and Armenian commercial banks; such scheme will inject liquidity into the financial, banking system to help SMEs, including self-employed and others to easily access credit and boost their businesses after the crisis. Details are being discussed these days.
-The EU published the decision about the distribution of 3billion Euro to the neighbouring countries. Why Armenia isn’t included in it?
-The European Commission recently announced a € 3 billion package in Macro Financial Assistance to 10 enlargement and neighbourhood partner countries to help them to limit the economic fallout of the coronavirus pandemic. MFA funds are made available in the form of loans on favourable terms to help countries cover their immediate, urgent financing needs.
Representatives of the Government, Ministry of Finance will be in better position to answer your question.
The Armenian government has so far favoured the important EU package of grant-based Budget Support that will help add resources to the State Budget. Without need of future repayments to the EU, the Budget Support will allow the Armenian government deliver more and better in terms of social & economic services to vulnerable Armenians and businesses affected by Covid19.
Armine Vardanian
