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Global Insight
September 23, 2011
IMF Staff Delivers Fairly Positive Assessment Following Armenian Mission
BYLINE: Venla Sipila
Following its visit to Armenia, an IMF Staff Mission has reported
progress on discussions with Armenian authorities over the course of
planned policies and needed actions for the rest of 2011 and 2012. The
discussions were conducted in the framework of the third review of
Armenia's Extended Fund Facility (EFF) and Extended Credit Facility
(ECF) arrangements. The delegation notes that overall macroeconomic
conditions in the country have improved, with economic growth
benefiting from the recovery in agricultural output and performance of
the industrial and service sectors. Together with easing global
commodity prices, the revival of the agricultural sector has also
facilitated moderation in inflation. The IMF report also states that
Armenia's performance under the assistance programme remains broadly
satisfactory. In particular, the fiscal balance is strengthening. The
authorities are also continuing their efforts to increase tax
revenues. Meanwhile, the Central Bank of Armenia (CBA) remains
committed to implementing a flexible exchange-rate regime and
improving tools to monitor banking-sector risks. Finally, the IMF
mission also notes signs of strengthening in the business environment,
due to improvement in the regulatory, legal and tax spheres.
Significance:The IMF completed its second review of Armenia's
performance under the current programmes in June. At that time, they
also noted progress in effectiveness of monetary policy (seeArmenia: 1
July 2011:). Together with the strengthened external finances, the
sound policies and progress in structural reforms are encouraging. It
remains essential that reforms progress further and close attention is
paid to policy conduct. This is important in the near term in order to
secure continued IMF financing. In addition, from a longer term
perspective, a lot still remains to be done in order to improve the
country's growth potential, support foreign-exchange earning capacity
and reduce poverty. A flexible exchange-rate regime still remains a
crucial part of macroeconomic policy in that it facilitates inflation
control, while further improvement in tax administration is key in
securing fiscal sustainability and in reducing dollarisation and the
size of the grey economy.
From: Emil Lazarian | Ararat NewsPress
September 23, 2011
IMF Staff Delivers Fairly Positive Assessment Following Armenian Mission
BYLINE: Venla Sipila
Following its visit to Armenia, an IMF Staff Mission has reported
progress on discussions with Armenian authorities over the course of
planned policies and needed actions for the rest of 2011 and 2012. The
discussions were conducted in the framework of the third review of
Armenia's Extended Fund Facility (EFF) and Extended Credit Facility
(ECF) arrangements. The delegation notes that overall macroeconomic
conditions in the country have improved, with economic growth
benefiting from the recovery in agricultural output and performance of
the industrial and service sectors. Together with easing global
commodity prices, the revival of the agricultural sector has also
facilitated moderation in inflation. The IMF report also states that
Armenia's performance under the assistance programme remains broadly
satisfactory. In particular, the fiscal balance is strengthening. The
authorities are also continuing their efforts to increase tax
revenues. Meanwhile, the Central Bank of Armenia (CBA) remains
committed to implementing a flexible exchange-rate regime and
improving tools to monitor banking-sector risks. Finally, the IMF
mission also notes signs of strengthening in the business environment,
due to improvement in the regulatory, legal and tax spheres.
Significance:The IMF completed its second review of Armenia's
performance under the current programmes in June. At that time, they
also noted progress in effectiveness of monetary policy (seeArmenia: 1
July 2011:). Together with the strengthened external finances, the
sound policies and progress in structural reforms are encouraging. It
remains essential that reforms progress further and close attention is
paid to policy conduct. This is important in the near term in order to
secure continued IMF financing. In addition, from a longer term
perspective, a lot still remains to be done in order to improve the
country's growth potential, support foreign-exchange earning capacity
and reduce poverty. A flexible exchange-rate regime still remains a
crucial part of macroeconomic policy in that it facilitates inflation
control, while further improvement in tax administration is key in
securing fiscal sustainability and in reducing dollarisation and the
size of the grey economy.
From: Emil Lazarian | Ararat NewsPress