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IMF APPROVES US$51.4 MILLION DISBURSEMENT FOR ARMENIA
armradio.am
13:03 11.12.2012
The Executive Board of the International Monetary Fund (IMF) today
completed its fifth review of Armenia's economic performance under a
program supported by Extended Fund Facility (EFF) and Extended Credit
Facility (ECF) arrangements. The completion of the review enables the
authorities to draw an additional SDR 33.5 million (about US$51.43
million), bringing total disbursements under the arrangements to
SDR 211.8 million (about US$324.4 million). The three-year SDR 266.8
million (about US$408.7 million) EFF and ECF arrangements with Armenia
were approved by the IMF's Executive Board on June 28, 2010.
The Executive Board also approved the authorities' request for a
waiver of nonobservance of the end-June 2012 performance criterion
on the floor on net official international reserves, which was missed
due to unexpected market pressures, and the modification of this same
performance criterion for the end-December 2012.
The Executive Board also concluded today the 2012 Article IV
Consultations with Armenia, which discusses economic policies from a
medium-term perspective, and considered an Ex Post Assessment Update
report on Fund relations with Armenia.
Following the Executive Board's discussion, Ms. Nemat Shafik, Deputy
Managing Director and Acting Chair, stated:
"Armenia's economy has continued to recover from the deep recession
experienced in 2008-09 in the context of the global financial crisis.
Growth accelerated in 2012, and is expected to be around potential
in 2013. Nonetheless, vulnerabilities remain, particularly due to
the large current account deficit and high degree of dollarization
in the banking sector.
"Policies under the program remain broadly on track, but net
international reserves came under unexpected pressures in May-June
when the central bank acted to avoid a destabilization of the market.
Since then, the central bank has been able to buy back part of the
lost reserves. However, full recovery of reserves would have involved
undue pressures on the market.
"Fiscal consolidation has continued to play a key role in the
stabilization of the economy, and the authorities' commitment to
continue with that fiscal strategy is welcome. Going forward, fiscal
consolidation should rely more on increasing revenues to allow for
higher social and investment spending while reducing the deficit
and debt.
"The financial sector remains sound, and steps have been taken
recently to enhance supervision and the liquidity of the system. For
the business environment more generally, structural reforms have
continued, but further measures are needed to strengthen the legal
framework, improve governance, and enhance competitiveness."
armradio.am
13:03 11.12.2012
The Executive Board of the International Monetary Fund (IMF) today
completed its fifth review of Armenia's economic performance under a
program supported by Extended Fund Facility (EFF) and Extended Credit
Facility (ECF) arrangements. The completion of the review enables the
authorities to draw an additional SDR 33.5 million (about US$51.43
million), bringing total disbursements under the arrangements to
SDR 211.8 million (about US$324.4 million). The three-year SDR 266.8
million (about US$408.7 million) EFF and ECF arrangements with Armenia
were approved by the IMF's Executive Board on June 28, 2010.
The Executive Board also approved the authorities' request for a
waiver of nonobservance of the end-June 2012 performance criterion
on the floor on net official international reserves, which was missed
due to unexpected market pressures, and the modification of this same
performance criterion for the end-December 2012.
The Executive Board also concluded today the 2012 Article IV
Consultations with Armenia, which discusses economic policies from a
medium-term perspective, and considered an Ex Post Assessment Update
report on Fund relations with Armenia.
Following the Executive Board's discussion, Ms. Nemat Shafik, Deputy
Managing Director and Acting Chair, stated:
"Armenia's economy has continued to recover from the deep recession
experienced in 2008-09 in the context of the global financial crisis.
Growth accelerated in 2012, and is expected to be around potential
in 2013. Nonetheless, vulnerabilities remain, particularly due to
the large current account deficit and high degree of dollarization
in the banking sector.
"Policies under the program remain broadly on track, but net
international reserves came under unexpected pressures in May-June
when the central bank acted to avoid a destabilization of the market.
Since then, the central bank has been able to buy back part of the
lost reserves. However, full recovery of reserves would have involved
undue pressures on the market.
"Fiscal consolidation has continued to play a key role in the
stabilization of the economy, and the authorities' commitment to
continue with that fiscal strategy is welcome. Going forward, fiscal
consolidation should rely more on increasing revenues to allow for
higher social and investment spending while reducing the deficit
and debt.
"The financial sector remains sound, and steps have been taken
recently to enhance supervision and the liquidity of the system. For
the business environment more generally, structural reforms have
continued, but further measures are needed to strengthen the legal
framework, improve governance, and enhance competitiveness."