Press Release

For Immediate Release

January 23, 2006

Contact: 202-521-3880

Email: info@mcc.gov

MCC Responds to Armenia’s President and Foreign Minister

Washington, D.C.  On December 19, 2005, the Board of Directors of the Millennium Challenge Corporation (MCC) approved a five-year $235.65 million Compact with the Republic of Armenia, but expressed concern over reports of irregularities in a November referendum on reforms to Armenia’s constitution. MCC CEO Ambassador John Danilovich outlined these concerns in a letter to Armenian President Robert Kocharian and urged the Armenian government to take additional steps to demonstrate its commitmenttothe fundamental principles underlying Millennium Challenge Account-eligibility: ruling justly, investing in people, and promoting economic freedom.

Recently, Foreign Minister Vartan Oskanian responded to Ambassador Danilovich’s letter and openly stated Armenia’s commitment to MCC’s principles. The link below provides the complete text of Minister Oskanian’s letter:
http://www.armeniaforeignministry.com/pr_06/060112_washington.html

Ambassador Danilovich has recommended to the MCC Board that it proceed with the signing of the MCC Compact with the Republic of Armenia. In the attached letter to President Kocharian dated January 18, 2006, Ambassador Danilovich also notes clearly that MCC will continue to pay specific attention to the Government of Armenia’s performance in the Ruling Justly category.

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Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.