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LEAVING ARMENIA IMF RESIDENT REPRESENTATIVE CALLS ON GOVERNMENT FOR DRASTIC STEPS TO IMPROVE BUSINESS AND INVESTMENT ENVIRONMENT
ARMINFO
Tuesday, June 4, 11:41
IMF Resident Representative in Armenia Guillermo Tolosa who is
completing his mission in the country has called on the Government
for drastic steps to significantly improve business and investment
environments in the country.
Talking to media, Mr. Tolosa said that despite many unresolved
problems, Armenia has made significant breakthroughs over the last
years in terms of macroeconomic stability, GDP growth and low
inflation, improvement of tax administration and discipline. In
addition, he said, the country's key figures have nearly outstripped
the pre-crisis level of 2008. Due to these successes, he said, IMF
no longer considers Armenia among the poorest countries in the world
and has given Armenia a status of an Emerging Markets Country. Other
donor organizations will follow IMF's example soon. This new status,
he said, necessitates correction of the approaches to cooperation
between IMF and Armenia, which will be reflected in a new program
of cooperation to be developed after the results of the three-year
arrangements EFF/ECF are summed up. 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.
In response to ArmInfo's question about current dependence of Armenia's
economy on foreign transfers (from Diaspora) and low level of economic
diversification, Guillermo Tolosa said IMF insists of drastic measures
of the Government to turn the tide for that very reason. Tangled up
in domestic political problems over the last year Armenia must now
work seriously to make drastic reforms. It is time for the policy
makers to forget about domestic political issues and refocus on
economic problems of the country, Mr. Tolosa said. In fact, coming
out of the list of the poorest countries, Armenia needs new economic
instruments and expectations. In this light, IMF supports the program
of the country's accession to the international debt market where
the Government plans to raise $500 million at the first stage and
diversify its credit liabilities in such a way.
Mr. Tolosa believes that IMF's call for drastic measures is
misinterpreted occasionally. He explained that IMF is quite satisfied
with the Government's policy and considers it rather successful,
but entering a new stage of development, Armenia must shift focus and
"drive fast."
Partially sharing the views of journalists regarding differences in
the statistical data on the country's development, precisely, that
Armenia's foreign debt per capita have nearly doubled over the last
years, the poverty level was back to the data of early 2000, and GNI
per capita based on purchasing power parity (PPP) has even declined,
Mr. Tolosa urged media to take these data in a single package. He
outlined the growing level of tax collection, tax discipline and red
tape reduction as positive facts. Nevertheless, he said, the results
will become more visible only after business environment is improved
in the country.
As regards the fact that direct foreign investments in Armenia for
2012 fell by 40% despite Armenia's growing rating in the WB's Doing
Business reports, Mr. Toloso tried to explain that with the financial
and economic crisis. Nevertheless, he said, there is certain optimism
about successful development of Armenia's economy.
Unfortunately, he said, business environment in the country is not
good enough to feed that optimism
It is noteworthy that Teresa Daban, Senior Economist at the
International Monetary Fund, having experience in macroeconomic and
financial issues in Latin America, will replace Guillermo Tolosa on
the position of IMF Resident Representative in Armenia.
ARMINFO
Tuesday, June 4, 11:41
IMF Resident Representative in Armenia Guillermo Tolosa who is
completing his mission in the country has called on the Government
for drastic steps to significantly improve business and investment
environments in the country.
Talking to media, Mr. Tolosa said that despite many unresolved
problems, Armenia has made significant breakthroughs over the last
years in terms of macroeconomic stability, GDP growth and low
inflation, improvement of tax administration and discipline. In
addition, he said, the country's key figures have nearly outstripped
the pre-crisis level of 2008. Due to these successes, he said, IMF
no longer considers Armenia among the poorest countries in the world
and has given Armenia a status of an Emerging Markets Country. Other
donor organizations will follow IMF's example soon. This new status,
he said, necessitates correction of the approaches to cooperation
between IMF and Armenia, which will be reflected in a new program
of cooperation to be developed after the results of the three-year
arrangements EFF/ECF are summed up. 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.
In response to ArmInfo's question about current dependence of Armenia's
economy on foreign transfers (from Diaspora) and low level of economic
diversification, Guillermo Tolosa said IMF insists of drastic measures
of the Government to turn the tide for that very reason. Tangled up
in domestic political problems over the last year Armenia must now
work seriously to make drastic reforms. It is time for the policy
makers to forget about domestic political issues and refocus on
economic problems of the country, Mr. Tolosa said. In fact, coming
out of the list of the poorest countries, Armenia needs new economic
instruments and expectations. In this light, IMF supports the program
of the country's accession to the international debt market where
the Government plans to raise $500 million at the first stage and
diversify its credit liabilities in such a way.
Mr. Tolosa believes that IMF's call for drastic measures is
misinterpreted occasionally. He explained that IMF is quite satisfied
with the Government's policy and considers it rather successful,
but entering a new stage of development, Armenia must shift focus and
"drive fast."
Partially sharing the views of journalists regarding differences in
the statistical data on the country's development, precisely, that
Armenia's foreign debt per capita have nearly doubled over the last
years, the poverty level was back to the data of early 2000, and GNI
per capita based on purchasing power parity (PPP) has even declined,
Mr. Tolosa urged media to take these data in a single package. He
outlined the growing level of tax collection, tax discipline and red
tape reduction as positive facts. Nevertheless, he said, the results
will become more visible only after business environment is improved
in the country.
As regards the fact that direct foreign investments in Armenia for
2012 fell by 40% despite Armenia's growing rating in the WB's Doing
Business reports, Mr. Toloso tried to explain that with the financial
and economic crisis. Nevertheless, he said, there is certain optimism
about successful development of Armenia's economy.
Unfortunately, he said, business environment in the country is not
good enough to feed that optimism
It is noteworthy that Teresa Daban, Senior Economist at the
International Monetary Fund, having experience in macroeconomic and
financial issues in Latin America, will replace Guillermo Tolosa on
the position of IMF Resident Representative in Armenia.