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IMF EXECUTIVE BOARD APPROVES US$127.6 MILLION EXTENDED ARRANGEMENT FOR ARMENIA
http://www.armradio.am/en/2014/03/10/imf-executive-board-approves-us127-6-million-extended-arrangement-for-armenia/
12:23 10.03.2014
Armenia, IMF
The Executive Board of the International Monetary Fund (IMF) today
approved a 38-month SDR 82.21 million (about US$127.6 million, or 89.4
percent of Armenia's quota) Extended Fund Facility (EFF) arrangement
with the Republic of Armenia to support the authorities' economic
program. The approval enables the disbursement of SDR 11.74 million
(about US$18.2 million), while the remaining amount will be phased over
the duration of the program, subject to semi-annual program reviews.
The program aims to support a rebound in economic activity, further
progress in poverty reduction, inflation stabilization, and a reduction
in outstanding fiscal and external vulnerabilities.
Following the Executive Board discussion on Armenia, Ms. Nemat Shafik,
Deputy Managing Director and Acting Chair, said:
"Armenia's performance under the 2010-13 Extended Fund Facility and
Extended Credit Facility arrangements was sound. However, growth
and inflation remain volatile, the external current account deficit
continues to be large, and poverty and unemployment are still high.
The new 38-month extended arrangement with the Fund aims to support
the authorities in addressing these challenges and to sustain Armenia's
access to international financial markets.
"Fiscal policy will play a central role in the program, supporting
growth in 2014 and reducing the headline deficit over the rest of
the program period to build up policy buffers. Delivering planned
revenue gains and reducing the under execution of the public investment
budget will be essential for successful implementation of the fiscal
strategy. Another key measure in the fiscal area is setting up
institutional structures to monitor and mitigate fiscal risks.
"Under the authorities' program, monetary policy will continue to be
framed by inflation targeting in the context of a flexible exchange
rate regime. For the financial sector, policy will be geared towards
promoting resilience to shocks and greater financial deepening.
"Growth-enhancing structural reforms will also play a central role
in the new program, given the objective of transforming Armenia into
a dynamic emerging market. In this context, smooth accession to the
Eurasian Customs Union, along with continuing growth of trade and
other links with the European Union, will be essential to achieve
diversification of markets, products, financial flows, and investors.
"Risks to the new program appear to be manageable, and Armenia's
repayment capacity remains robust. The authorities have a long
track record of sound macroeconomic policies but maintaining a
strong ownership of the program will be essential to its successful
implementation."
http://www.armradio.am/en/2014/03/10/imf-executive-board-approves-us127-6-million-extended-arrangement-for-armenia/
12:23 10.03.2014
Armenia, IMF
The Executive Board of the International Monetary Fund (IMF) today
approved a 38-month SDR 82.21 million (about US$127.6 million, or 89.4
percent of Armenia's quota) Extended Fund Facility (EFF) arrangement
with the Republic of Armenia to support the authorities' economic
program. The approval enables the disbursement of SDR 11.74 million
(about US$18.2 million), while the remaining amount will be phased over
the duration of the program, subject to semi-annual program reviews.
The program aims to support a rebound in economic activity, further
progress in poverty reduction, inflation stabilization, and a reduction
in outstanding fiscal and external vulnerabilities.
Following the Executive Board discussion on Armenia, Ms. Nemat Shafik,
Deputy Managing Director and Acting Chair, said:
"Armenia's performance under the 2010-13 Extended Fund Facility and
Extended Credit Facility arrangements was sound. However, growth
and inflation remain volatile, the external current account deficit
continues to be large, and poverty and unemployment are still high.
The new 38-month extended arrangement with the Fund aims to support
the authorities in addressing these challenges and to sustain Armenia's
access to international financial markets.
"Fiscal policy will play a central role in the program, supporting
growth in 2014 and reducing the headline deficit over the rest of
the program period to build up policy buffers. Delivering planned
revenue gains and reducing the under execution of the public investment
budget will be essential for successful implementation of the fiscal
strategy. Another key measure in the fiscal area is setting up
institutional structures to monitor and mitigate fiscal risks.
"Under the authorities' program, monetary policy will continue to be
framed by inflation targeting in the context of a flexible exchange
rate regime. For the financial sector, policy will be geared towards
promoting resilience to shocks and greater financial deepening.
"Growth-enhancing structural reforms will also play a central role
in the new program, given the objective of transforming Armenia into
a dynamic emerging market. In this context, smooth accession to the
Eurasian Customs Union, along with continuing growth of trade and
other links with the European Union, will be essential to achieve
diversification of markets, products, financial flows, and investors.
"Risks to the new program appear to be manageable, and Armenia's
repayment capacity remains robust. The authorities have a long
track record of sound macroeconomic policies but maintaining a
strong ownership of the program will be essential to its successful
implementation."