MICROCAPITAL BRIEF: IFAD, OPEC Fund for International Development Lend $36m to Support Infrastructure and Rural Financial Support Programme in Armenia

The International Fund for Agricultural Development (IFAD), an agency of the United Nations that aims to alleviate poverty, has agreed to lend USD 11 million to the Republic of Armenia for a “Infrastructure and Rural Finance Support Programme,” a USD 52.8 million initiative that aims to create sustainable employment opportunities and higher incomes for people in “the business, financial and agricultural sectors” of the Armenian economy [1]. The OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development (OFID), a multilateral development finance institution based in Austria, will also contribute a loan of USD 25 million. Additional funding will be contributed by the government of Armenia, that is contributing USD 10.1 million; potential programme beneficiaries, who are providing USD 3.5 million; and unidentified bilateral agencies and Armenian financial institutions, that will contribute USD 4.4 million. The programme plans to benefit approximately 66,000 rural people with key focus on “women-headed households.”

IFAD disbursed new commitments of USD 2.7 billion during 2013, bringing its portfolio of ongoing projects to USD 8.3 billion. IFAD operates in 97 countries as of 2013.

As of October 2014, OFID supports activities in 134 countries and has total approved commitments of USD 17.5 billion [2].

By Nisha Koul, Research Associate

About United Nations International Fund for Agricultural Development (IFAD): The International Fund for Agricultural Development (IFAD), an agency of the United Nations, was established in 1977 as an outcome of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries by focusing on country-specific solutions. IFAD disbursed new commitments of USD 2.7 billion during 2013, bringing its portfolio of ongoing projects to USD 8.3 billion. IFAD operates in 97 countries as of 2013.

About the OPEC Fund for International Development (OFID): The OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development, initially founded in 1976 as the OPEC Special Fund, is a multilateral development finance institution based in Austria. The mission of the OPEC Fund for International Development is to foster relationships between developing countries, work to eradicate poverty, finance development through grants and loans. As of October 2014, OFID supports activities in 134 countries and has total approved commitments of USD 17.5 billion.

Sources and Additional Resources:

[1] IFAD, Press Release, Armenia can boost income growth and youth employment through agriculture

[2] OFID, Profile October 2014

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MicroCapital Universe Profile, United Nations International Fund for Agricultural Development (IFAD)

MicroCapital Universe Profile, OPEC Fund for International Development (OFID)

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