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States News Service
June 15, 2012 Friday
IMF EXECUTIVE BOARD COMPLETES FOURTH REVIEW UNDER EFF/ECF ARRANGEMENT
FOR ARMENIA AND APPROVES US$50.7 MILLION DISBURSEMENT
WASHINGTON
The following information was released by the International Monetary Fund:
The Executive Board of the International Monetary Fund (IMF) today
completed its fourth 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 SDR 33.5 million (about US$50.7 million), bringing
total disbursements under the arrangements to SDR 178.3 million
(US$269.8 million). The three-year SDR 266.8 million (US$403.8
million) EFF and ECF arrangements with Armenia were approved by the
IMF's Executive Board on June 28, 2010 (see Press Release No. 10/263).
The Board's decision on the fourth review was taken on a lapse of time
basis.1
Adherence to the policies agreed under the Fund-supported program has
played an important role in helping Armenia restore solid growth. The
outlook for 2012 and the medium-term is positive, but not without
risks, particularly stemming from Europe and affecting Armenia via
Russia. Growth picked up to 4.6 percent in 2011, but is expected to
moderate to just below 4 percent in 2012. Inflation has come down
significantly over the past year and should remain near the central
bank's target of 4 percent. Credit growth remains strong. The Board is
also considering a Financial Sector Stability Assessment (FSSA) for
Armenia, under the Financial Sector Assessment Program of the IMF and
the World Bank.
The 2011 fiscal deficit was well below program targets, reflecting
restrained spending. The deficit is likely to be moderately higher in
2012, but still in line with the program, and with higher expected
revenues allowing for increases in priority spending. The external
current account deficit has declined significantly, helped by the
fiscal adjustment, but remains high. The authorities plan to implement
further business environment and tax and pension reform measures.
Together with enhanced exchange rate flexibility, these actions should
improve productivity and support growth and diversification of
exports.
June 15, 2012 Friday
IMF EXECUTIVE BOARD COMPLETES FOURTH REVIEW UNDER EFF/ECF ARRANGEMENT
FOR ARMENIA AND APPROVES US$50.7 MILLION DISBURSEMENT
WASHINGTON
The following information was released by the International Monetary Fund:
The Executive Board of the International Monetary Fund (IMF) today
completed its fourth 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 SDR 33.5 million (about US$50.7 million), bringing
total disbursements under the arrangements to SDR 178.3 million
(US$269.8 million). The three-year SDR 266.8 million (US$403.8
million) EFF and ECF arrangements with Armenia were approved by the
IMF's Executive Board on June 28, 2010 (see Press Release No. 10/263).
The Board's decision on the fourth review was taken on a lapse of time
basis.1
Adherence to the policies agreed under the Fund-supported program has
played an important role in helping Armenia restore solid growth. The
outlook for 2012 and the medium-term is positive, but not without
risks, particularly stemming from Europe and affecting Armenia via
Russia. Growth picked up to 4.6 percent in 2011, but is expected to
moderate to just below 4 percent in 2012. Inflation has come down
significantly over the past year and should remain near the central
bank's target of 4 percent. Credit growth remains strong. The Board is
also considering a Financial Sector Stability Assessment (FSSA) for
Armenia, under the Financial Sector Assessment Program of the IMF and
the World Bank.
The 2011 fiscal deficit was well below program targets, reflecting
restrained spending. The deficit is likely to be moderately higher in
2012, but still in line with the program, and with higher expected
revenues allowing for increases in priority spending. The external
current account deficit has declined significantly, helped by the
fiscal adjustment, but remains high. The authorities plan to implement
further business environment and tax and pension reform measures.
Together with enhanced exchange rate flexibility, these actions should
improve productivity and support growth and diversification of
exports.