DUSHANBE, July 13, 2012, Asia-Plus — The World Bank Group provided US $10.47 billion in funding to governments in Emerging Europe and Central Asia (ECA) in fiscal year 2012, which ended on June 30, amid uncertainty in the Eurozone and modest growth, press release issued by the World Bank said.
The recently published Global Economic Prospects report highlights that growth in the region should slow in 2012 to 3.3 percent, assuming a resolution of the Euro Area crisis by end-2012. Bank support in ECA reached $6.6 billion this fiscal year, including $6.2 billion from the International Bank for Reconstruction and Development (IBRD) and $362 million from the International Development Association (IDA). Lending was targeted in supporting three regional pillars: deepening reforms for improved competitiveness, supporting social sector reforms for inclusive growth, and helping countries take action for greening growth trajectories.
Through operations in the region in fiscal year 2012, the Bank helped stabilize the financial sector in Serbia and FYR Macedonia and increase access to finance for small and medium-size enterprises in Armenia, Bosnia and Herzegovina, Moldova, and Turkey. Its investments improved roads in Kazakhstan, the Kyrgyz Republic, Ukraine, and the South Caucasus; helped modernize the public administration in Romania; and financed efforts by Poland and the Russian Federation to diversify their economies and spur innovation.
In Tajikistan, the Bank is supporting the government’s efforts to channel support to the most vulnerable in times of need. Its lending helped protect spending on healthcare Tajikistan. The Bank also provided Rapid Social Response and IDA grants to Tajikistan.
A legacy of environmental mismanagement and the highest energy intensity of production in the world created massive challenges for the countries of Emerging Europe and Central Asia. To help meet them, the Bank is financing energy efficiency and renewable energy projects, investing in improving the capacity of weather forecast and climate change, disaster mitigation and climate risk management, flood management, and urban development and water and sanitation services across the region.
The International Finance Corporation (IFC) this year continued to maintain a focus on investing in strategic areas. In FY12, IFC committed $4.28 billion, including $1.3 billion in syndicated loans and other mobilization, in 114 projects across the region. In this fiscal year, IFC commitments in ECA on its own account only were $2.98 billion.
During fiscal year 2012, the Multilateral Investment Guarantee Agency (MIGA) provided support for 18 projects with $928 million in political risk insurance coverage in Europe and Central Asia.
