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IMF AND ARMENIAN GOVERNMENT TO CONDUCT NEGOTIATIONS IN SEPTEMBER ON NEW PROGRAM OF IMF ASSISTANCE TO ARMENIA
Noyan Tapan
http://www.nt.am/news.php?shownews=114624
Ju ne 17, 2008
YEREVAN, JUNE 17, NOYAN TAPAN. Thanks to the negotiations between
the IMF and the new government of Armenia in Yerevan on June 11-17,
a basis has been created for conducting negotiations in September
with the aim of launching a new program of the IMF's assistance,
the division chief of the IMF Middle East and Central Asia Department
Marta Castello-Branco announced at the June 17 press conference.
In her words, by the results of the recent visit of IMF experts,
the Armenian government's determination in the implementation of
economic reforms, in particular, its steps on tax policy and customs
administration improvement are quite satisfactory. She attached special
importance to the comprehensive rather than sectional implementation
of reforms.
M. Castello-Branco expressed an opinion that the previous years'
two-digit indices of Armenian GDP growth will continue. 9.3% GDP
growth in the first four months of this year resulted in a growth of
the demand for import (it grew thanks to the increased remittances
from abroad), as a result of which the negative balance of the current
account has grown and pressure of the Armenian dram's appreciation
has declined. Although the 12-month sharp inflation of about 10%
in April was mostly due to high prices of imported foodstuffs, the
prices of nonfood commodities also went up because of the growth of
international oil prices and the increased domestic demand. M.
Castello-Branco forecast that under conditions of the absence of
external shocks regarding the supply, the 12-month inflation will
decline and make 7% in December.
Accoridng to her, the developments in the fiscal sector were positive
and ensured good tax collection, expecially VAT collection indices. The
IMF official said that in case of greater tax revenues as compared
with the envisaged index, the budgetary deficit by 2008 results may be
less than the programmed index, which can be used to reduce inflation
pressure through the monetary and credit policy. In this connection
M. Castello-Branco positively assessed the raising of the refinancing
interest rate by the Central Bank of Armenia, which has tightened the
monetary and credit policy. She said that such mode of action should
continue in the future.
Noyan Tapan
http://www.nt.am/news.php?shownews=114624
Ju ne 17, 2008
YEREVAN, JUNE 17, NOYAN TAPAN. Thanks to the negotiations between
the IMF and the new government of Armenia in Yerevan on June 11-17,
a basis has been created for conducting negotiations in September
with the aim of launching a new program of the IMF's assistance,
the division chief of the IMF Middle East and Central Asia Department
Marta Castello-Branco announced at the June 17 press conference.
In her words, by the results of the recent visit of IMF experts,
the Armenian government's determination in the implementation of
economic reforms, in particular, its steps on tax policy and customs
administration improvement are quite satisfactory. She attached special
importance to the comprehensive rather than sectional implementation
of reforms.
M. Castello-Branco expressed an opinion that the previous years'
two-digit indices of Armenian GDP growth will continue. 9.3% GDP
growth in the first four months of this year resulted in a growth of
the demand for import (it grew thanks to the increased remittances
from abroad), as a result of which the negative balance of the current
account has grown and pressure of the Armenian dram's appreciation
has declined. Although the 12-month sharp inflation of about 10%
in April was mostly due to high prices of imported foodstuffs, the
prices of nonfood commodities also went up because of the growth of
international oil prices and the increased domestic demand. M.
Castello-Branco forecast that under conditions of the absence of
external shocks regarding the supply, the 12-month inflation will
decline and make 7% in December.
Accoridng to her, the developments in the fiscal sector were positive
and ensured good tax collection, expecially VAT collection indices. The
IMF official said that in case of greater tax revenues as compared
with the envisaged index, the budgetary deficit by 2008 results may be
less than the programmed index, which can be used to reduce inflation
pressure through the monetary and credit policy. In this connection
M. Castello-Branco positively assessed the raising of the refinancing
interest rate by the Central Bank of Armenia, which has tightened the
monetary and credit policy. She said that such mode of action should
continue in the future.