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IMF Executive Board Approves $84 Million Disbursement For Armenia

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  • IMF Executive Board Approves $84 Million Disbursement For Armenia

    IMF EXECUTIVE BOARD APPROVES $84 MILLION DISBURSEMENT FOR ARMENIA

    http://www.armradio.am/en/2013/07/02/imf-executive-board-approves-84-million-disbursement-for-armenia/
    11:13 02.07.2013
    Armenia, IMF

    The Executive Board of the International Monetary Fund (IMF)
    today completed the sixth and final review of Armenia's economic
    performance under a program supported by Extended Fund Facility (EFF)
    and Extended Credit Facility (ECF) arrangements. The completion
    of the review allows the authorities to draw an additional SDR 55
    million (about US$84 million), bringing total disbursements under
    the arrangements to the full SDR 266.8 million (US$407.2 million)
    available. The three-year EFF and ECF arrangements with Armenia were
    approved by the IMF's Executive Board on June 28, 2010. The Board's
    decision on the sixth review was taken on a lapse of time basis.

    Policies have largely delivered on the objectives of the
    EFF/ECF-supported program, which concludes in September. Growth reached
    4.7 percent in 2011, 7.2 percent last year, and continues to be strong
    in 2013. Inflation has remained below the CBA's 4 percent target,
    and shocks have been short-lived. The Central Bank of Armenia (CBA)
    has permitted greater flexibility of the dram over the past year,
    rebuilt reserves following sizeable intervention May-June 2012, and
    strengthened the monetary framework and operations. The CBA has also
    moved decisively to implement Financial Sector Assessment Program and
    IMF technical assistance recommendations. Banking sector indicators
    remain sound. The reduction of the fiscal deficit over the past
    three years, which has included substantial tax revenue increases,
    has reestablished fiscal sustainability and contributed to external
    adjustment.

    At the same time, significant challenges and vulnerabilities remain.

    Robust growth has resumed, but has reflected in part rapid growth of
    credit and consumption, favorable weather, and high metals prices.

    More progress is needed to continue the external adjustment, reduce
    poverty, further restore buffers, and enhance the business climate
    and private sector- and export-led growth. Implementation of the
    authorities' stated policy plans should help address these challenges
    and vulnerabilities.

    The Executive Board takes decisions under its lapse of time procedure
    when it is agreed by the Board that a proposal can be considered
    without convening formal discussions.

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