PRESS RELEASE November 11, 2005

Armenia Continues to Qualify for Millennium Challenge Funds in FY 2006

On November 8, 2005, U.S. Millennium Challenge Corporation announced the countries qualifying for Millennium Challenge Account (MCA) in Fiscal Year 2006. Armenia, part of the original group of countries eligible for MCA funds, will continue to be eligible together with 22 other countries. The MCA, a foreign aid distribution mechanism introduced by the Bush administration, will fund programs submitted by eligible countries to promote the goals of poverty reduction and economic development.

The decision on qualifying Armenia as an eligible recipient was made based on Armenia's performance in three categories of indicators, namely “ruling justly,” “investing in people,” and “encouraging economic freedom.”

Negotiations and technical evaluations are currently underway on to finalize Armenia 's draft compact presented to the MCC. The draft, which was submitted after countrywide consultations with NGOs, experts, and local community activists, will focus on poverty reduction and economic development in rural areas of Armenia , including rehabilitation of local roads and irrigation networks.