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US Millennium Challenge Corporation stops financial support to Armenia

11 June 2009 17:11 (UTC +04:00)

The decision concerns only the road construction in Armenia, but not the irrigation system.

The Board of Directors said it made this decision because last actions by the Armenian government were contradictory to the democratic administrative standards of the Millennium Challenge Corporation. â€œThe corporation regrettably reports that it canâ€™t fund the construction of roads in Armenia. The government of Armenia is responsible for that decision because the governmentâ€™s activity didnâ€™t meet demands of this programâ€, said Executive Director Rodney Bent. He said the decision wouldnâ€™t be reviewed again.

The Corporation has a right to stop the financial assistance temporarily or completely if the country doesnâ€™t meet the required issues, including freedom of press, transparency of the administration and the governmentâ€™s activity for prevention of corruption, democratic power of the people.

The Millennium Challenge Corporation signed an agreement with Armenia in 2006. According to the agreement, it must allocate 235.5 million USD to Armenia within five years. 160 million USD should be allocated for the irrigation system.

Azerbaijan does not participate in this program.