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ON GUARD: IMF REP SAYS ARMENIA CAN AVOID RUSSIA TRICKLE-DOWN WITH PROPER PREPARATION
Economy | 05.12.14 | 15:46
By Sara Khojoyan
ArmeniaNow reporter
As concerns arise over how Armenia will be affected by Russia's
economic problems brought on by international sanctions, an
International Monetary Fund representative says internal stability
will serve against foreign unease.
Teresa Daban Sanchez, IMF Resident Representative, told reporters
on Friday that Armenia's Central Bank (CB) and the Government of
Armenia can preserve economic and financial stability with proper
policy implementation.
"For instance, the ruble's decline recently was a shock and all market
players must abide it," Sanchez said. "In case of Armenia the positive
thing is that there are tools to provide transparency and smoothness
of the process, which we demand from the CB."
To preserve the stability of the situation the IMF advised the Armenian
government to spend more, for which, of course, they emphasize that
it is important to have a stable budget.
Nevertheless, Armenia will face difficulties as well.
Over the past 10 months, transfers from Russia to Armenia decreased
by more than $53 million (a total of $1.34 billion) which, according
to the IMF evaluation, is conditioned by oil price decrease in the
international market and the problems the Russian economy is facing
because of Western sanctions.
The IMF, at the same time, does not predict a high level of inflation
at the yearend in Armenia, saying that the CB will be able to preserve
price increase in the previsioned range of 4+/-1.5 percent, explaining
it by the low (1.3 percent) so far this year.
At Thursday's governmental meeting Prime Minister Hovik Abrahamyan
urged a close monitoring of consumer goods to temper rumors about a
10-15 percent inflation expected in the coming weeks.
The IMF representative, however, could not predict how the events
will follow with the dram devaluating and New Year's trade.
"Currently we do not have numbers, but there are many tools that
the government can use. For example, it must be done so that prices
for oil, petrol, metals, that are declining in the world decline in
Armenia as well," Sanchez said.
http://armenianow.com/economy/59110/international_monetary_fund_armenia_inflation_hovi k_abrahamyan
Economy | 05.12.14 | 15:46
By Sara Khojoyan
ArmeniaNow reporter
As concerns arise over how Armenia will be affected by Russia's
economic problems brought on by international sanctions, an
International Monetary Fund representative says internal stability
will serve against foreign unease.
Teresa Daban Sanchez, IMF Resident Representative, told reporters
on Friday that Armenia's Central Bank (CB) and the Government of
Armenia can preserve economic and financial stability with proper
policy implementation.
"For instance, the ruble's decline recently was a shock and all market
players must abide it," Sanchez said. "In case of Armenia the positive
thing is that there are tools to provide transparency and smoothness
of the process, which we demand from the CB."
To preserve the stability of the situation the IMF advised the Armenian
government to spend more, for which, of course, they emphasize that
it is important to have a stable budget.
Nevertheless, Armenia will face difficulties as well.
Over the past 10 months, transfers from Russia to Armenia decreased
by more than $53 million (a total of $1.34 billion) which, according
to the IMF evaluation, is conditioned by oil price decrease in the
international market and the problems the Russian economy is facing
because of Western sanctions.
The IMF, at the same time, does not predict a high level of inflation
at the yearend in Armenia, saying that the CB will be able to preserve
price increase in the previsioned range of 4+/-1.5 percent, explaining
it by the low (1.3 percent) so far this year.
At Thursday's governmental meeting Prime Minister Hovik Abrahamyan
urged a close monitoring of consumer goods to temper rumors about a
10-15 percent inflation expected in the coming weeks.
The IMF representative, however, could not predict how the events
will follow with the dram devaluating and New Year's trade.
"Currently we do not have numbers, but there are many tools that
the government can use. For example, it must be done so that prices
for oil, petrol, metals, that are declining in the world decline in
Armenia as well," Sanchez said.
http://armenianow.com/economy/59110/international_monetary_fund_armenia_inflation_hovi k_abrahamyan