Announcement

Collapse
No announcement yet.

IMF Commends Armenian Macroeconomic Policy in Programme Review

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • IMF Commends Armenian Macroeconomic Policy in Programme Review

    Global Insight
    July 1, 2011


    IMF Commends Armenian Macroeconomic Policy in Programme Review

    BYLINE: Venla Sipila


    The Executive Board of the International Monetary Fund (IMF) has
    completed its second review of Armenia's performance of the current
    assistance programme, funded by the Extended Fund Facility (EFF) and
    the Extended Credit Facility (EDF) arrangements. On completing the
    review, the Board commended the Armenian authorities for their prudent
    fiscal policy and timely and effective monetary policy. In particular,
    the directors noted that the monetary authorities' efforts to actively
    manage liquidity have resulted in increased feed-through of policy
    rate moves to market interest rates, thus improving effectiveness of
    monetary policy. The Fund notes that these appropriate policies have
    helped the economy recover from the recent global crisis. Armenia
    still faces several challenges, however, which necessitate decisive
    implementation of suitable policies also going forward. Among other
    things, the Fund also reiterates the importance of continued efforts
    to implement reforms in fiscal administration. Challenges also remain
    in containing rapid inflation and the persisting external and fiscal
    deficits, high dollarisation, and increased public debt and poverty.

    Significance:The completion of the review allows for Armenia to
    withdraw a disbursement of SDR36.2 million (special drawing rights,
    some USD57.8 million), bringing total withdrawals under the current
    arrangement to SDR 108.6 million. The three-year programme totals
    SDR266.8 million, and the first review of this was concluded in
    December (seeArmenia: 2 December 2010:). Given Armenia's fairly good
    performance under its IMF-supported programmes, and, in particular,
    the positive staff assessment following their recent visit to Armenia,
    the positive Board decision was expected (seeArmenia: 18 April 2011:).
    Continued good relations with the IMF are important for Armenia, given
    that its external financing needs, compared to its current
    foreign-exchange earnings capacity, are still substantial.


    From: Baghdasarian
Working...
X