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[Azat]

World Bank President James Wolfensohn lauded Armenia and its leadership yesterday, touting the country as a viable investment opportunity, while announcing a private sector initiative by the group's finance arm, reports Reuters. Addressing a group of investors at a New York conference on investment opportunities in Armenia, Wolfensohn said the country, "is becoming a true part of the possibilities of globalization," adding it was making headway in alleviating myriad social and economic problems.

Wolfensohn said investors in the country-a former member of the Soviet Union which is among the poorest countries in the region-could "help build a self-sustaining and reliant Armenia," by regarding it as an attractive investment. Also present at the event was Armenian President Robert Kocharian, who Wolfensohn said had, "done a remarkable job in leading the country and deserves all our support."

Wolfensohn was on hand to unveil an equity investment of $3.6 million from the IFC, notes the story. The funds will be used to renovate the Hotel Armenia, located in the center of Yerevan. Armenia expects to receive $50 million in credits from the World Bank, part of which will depend on the successful privatization of the country's energy distribution sector.

[Boghos]

I don´t want too sound pessimistic but the issue of investments is always connected with stability and markets. Our dear country has no relations with Turkey and Azerbaijan. Georgia is not exactly a friendly country, nor is it a market for our products.

Of course we have by far the best potential by far, especially in high tech, but not only that. But to say that Armenia is a great investment alternative or to praise Kocharian is going a bit too far. We need to be realistic. The World Bank is in practice an agency of the US government. It is just supporting its regional agenda, which means pouring more money into Armenia.

That is good. But let´s look at things as they really are.