IMF extends US$56, 1 million to Armenia

YEREVAN, DECEMBER 13, ARMENPRESS:

The Executive Board of the International Monetary Fund (IMF) has completed its third review of Armenia’s 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 SDR36.2million (about US$56.1million), bringing total disbursements under the arrangements to SDR 144.8 million (about US$224.3million). The three-year SDR266.8 million (about US$413.4 million) EFF and ECF arrangement with Armenia was approved by the IMF’s Executive Board on June 28, 2010, Armenpress reports, citing the IMF official website.

Following the Executive Board's discussion on Armenia, Ms. Nemat Shafik, Deputy Managing Director expressed gratification to RA authorities for the efforts directed toward ensuring of sustainable policy within the framework of the fund, and added: “Fiscal policies have been prudent, with the budget deficit reduced significantly again in 2011, and further consolidation planned for 2012 and beyond. This should help ensure fiscal and debt sustainability and reduce vulnerabilities. The 2012 tax package is welcome, as it will ease the adjustment burden on spending. Further measures are expected in the forthcoming tax strategy paper”.

Ms. Nemat Shafik also stated that monetary policy helped to mitigate inflationary pressures, and more active liquidity management has kept market rates more in line with the policy rate. She noted that further efforts are needed, however, to reduce volatility. “While private inflows have continued and banking indicators remain strong, ongoing efforts to improve banking sector monitoring and resilience are welcome,” said Shafik.