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IMF EXECUTIVE BOARD APPROVES US$50.7 MILLION DISBURSEMENT FOR ARMENIA
armradio.am
18.06.2012 15:32
The Executive Board of the International Monetary Fund (IMF) completed
its fourth review of Armenia~Rs economic performance under a program
supported by Extended Fund Facility (EFF) and Extended Credit Facility
(ECF) arrangements.
The decision enables the authorities to draw an additional SDR 33.5
million (about US$50.7 million), bringing total disbursements under the
arrangements to SDR 178.3 million (US$269.8 million). The three-year
SDR 266.8 million (US$403.8 million) EFF and ECF arrangements with
Armenia were approved by the IMF~Rs Executive Board on June 28,
2010. The Board's decision on the fourth review was taken on a lapse
of time basis.
Adherence to the policies agreed under the Fund-supported program has
played an important role in helping Armenia restore solid growth. The
outlook for 2012 and the medium-term is positive, but not without
risks, particularly stemming from Europe and affecting Armenia via
Russia. Growth picked up to 4.6 percent in 2011, but is expected to
moderate to just below 4 percent in 2012. Inflation has come down
significantly over the past year and should remain near the central
bank~Rs target of 4 percent. Credit growth remains strong. The Board
is also considering a Financial Sector Stability Assessment (FSSA)
for Armenia, under the Financial Sector Assessment Program of the
IMF and the World Bank.
The 2011 fiscal deficit was well below program targets, reflecting
restrained spending. The deficit is likely to be moderately higher in
2012, but still in line with the program, and with higher expected
revenues allowing for increases in priority spending. The external
current account deficit has declined significantly, helped by the
fiscal adjustment, but remains high. The authorities plan to implement
further business environment and tax and pension reform measures.
Together with enhanced exchange rate flexibility, these actions should
improve productivity and support growth and diversification of exports.
From: Emil Lazarian | Ararat NewsPress
armradio.am
18.06.2012 15:32
The Executive Board of the International Monetary Fund (IMF) completed
its fourth review of Armenia~Rs economic performance under a program
supported by Extended Fund Facility (EFF) and Extended Credit Facility
(ECF) arrangements.
The decision enables the authorities to draw an additional SDR 33.5
million (about US$50.7 million), bringing total disbursements under the
arrangements to SDR 178.3 million (US$269.8 million). The three-year
SDR 266.8 million (US$403.8 million) EFF and ECF arrangements with
Armenia were approved by the IMF~Rs Executive Board on June 28,
2010. The Board's decision on the fourth review was taken on a lapse
of time basis.
Adherence to the policies agreed under the Fund-supported program has
played an important role in helping Armenia restore solid growth. The
outlook for 2012 and the medium-term is positive, but not without
risks, particularly stemming from Europe and affecting Armenia via
Russia. Growth picked up to 4.6 percent in 2011, but is expected to
moderate to just below 4 percent in 2012. Inflation has come down
significantly over the past year and should remain near the central
bank~Rs target of 4 percent. Credit growth remains strong. The Board
is also considering a Financial Sector Stability Assessment (FSSA)
for Armenia, under the Financial Sector Assessment Program of the
IMF and the World Bank.
The 2011 fiscal deficit was well below program targets, reflecting
restrained spending. The deficit is likely to be moderately higher in
2012, but still in line with the program, and with higher expected
revenues allowing for increases in priority spending. The external
current account deficit has declined significantly, helped by the
fiscal adjustment, but remains high. The authorities plan to implement
further business environment and tax and pension reform measures.
Together with enhanced exchange rate flexibility, these actions should
improve productivity and support growth and diversification of exports.
From: Emil Lazarian | Ararat NewsPress