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Radio Free Europe, Czech Rep.
Dec 3 2004
Fresh Loan Ends IMF Program In Armenia
By Atom Markarian 03/12/2004 03:56
The International Monetary Fund completed on Thursday a three-year
lending program designed to sustain macroeconomic stability in
Armenia with the disbursement of its final $13.7 million installment.
The release of the sixth tranche of the $105.3 million Poverty
Reduction and Growth Facility (PRGF) was announced by Armenian
Finance Minister Vartan Khachatrian and Kames McHugh, the IMF
representative in Yerevan. It was formally approved by the fund's
governing board in Washington the previous night.
The PRGF funds, first made available in May 2001, have been used by
the Armenian Central Bank to maintain a stable exchange rate of the
national currency, the dram, and alleviate the country's negative
balance of payments. IMF officials said the scheme has served its
purpose, praising the Armenian government for pursuing strict fiscal
and monetary policies and reforming loss-making public utilities.
The IMF's deputy executive director, Augustin Carstens, said in a
statement that this "prudent" policy was key to a double-digit
economic growth registered by the Armenian authorities last year. He
urged them to stay the course.
"This commitment to good economic policies has now started to bear
results," McHugh told reporters in Yerevan. "Armenia now enjoys high
economic growth, poverty indicators are starting to fall and living
standards are beginning to rise."
The IMF statement cautioned at the same time that Armenia's continued
economic recovery is contingent on better governance. It noted in
particular that the authorities must eliminate "arbitrary practices"
in the collection of taxes and import duties -- a major source of
complaints by local businessmen.
Armenia's macroeconomic performance, which has still not had a
serious impact on living standards, was also praised recently by the
World Bank, its number one creditor. A statement by the bank
described it as "exemplary."
Khachatrian welcomed the donors' endorsement of his government's
economic track record. He also announced that the government has
decided to seek another three-year credit from the IMF despite the
dram's dramatic strengthening against the U.S. dollar and Armenia's
own hard currency reserves approaching $500 million.
"We will implement another three-year [IMF] program," he said. "A
political decision has already been taken."
In an interview with RFE/RL last week, Khachatrian predicted that the
Armenian growth will somewhat slow down but remain strong in the
coming years.
Dec 3 2004
Fresh Loan Ends IMF Program In Armenia
By Atom Markarian 03/12/2004 03:56
The International Monetary Fund completed on Thursday a three-year
lending program designed to sustain macroeconomic stability in
Armenia with the disbursement of its final $13.7 million installment.
The release of the sixth tranche of the $105.3 million Poverty
Reduction and Growth Facility (PRGF) was announced by Armenian
Finance Minister Vartan Khachatrian and Kames McHugh, the IMF
representative in Yerevan. It was formally approved by the fund's
governing board in Washington the previous night.
The PRGF funds, first made available in May 2001, have been used by
the Armenian Central Bank to maintain a stable exchange rate of the
national currency, the dram, and alleviate the country's negative
balance of payments. IMF officials said the scheme has served its
purpose, praising the Armenian government for pursuing strict fiscal
and monetary policies and reforming loss-making public utilities.
The IMF's deputy executive director, Augustin Carstens, said in a
statement that this "prudent" policy was key to a double-digit
economic growth registered by the Armenian authorities last year. He
urged them to stay the course.
"This commitment to good economic policies has now started to bear
results," McHugh told reporters in Yerevan. "Armenia now enjoys high
economic growth, poverty indicators are starting to fall and living
standards are beginning to rise."
The IMF statement cautioned at the same time that Armenia's continued
economic recovery is contingent on better governance. It noted in
particular that the authorities must eliminate "arbitrary practices"
in the collection of taxes and import duties -- a major source of
complaints by local businessmen.
Armenia's macroeconomic performance, which has still not had a
serious impact on living standards, was also praised recently by the
World Bank, its number one creditor. A statement by the bank
described it as "exemplary."
Khachatrian welcomed the donors' endorsement of his government's
economic track record. He also announced that the government has
decided to seek another three-year credit from the IMF despite the
dram's dramatic strengthening against the U.S. dollar and Armenia's
own hard currency reserves approaching $500 million.
"We will implement another three-year [IMF] program," he said. "A
political decision has already been taken."
In an interview with RFE/RL last week, Khachatrian predicted that the
Armenian growth will somewhat slow down but remain strong in the
coming years.