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Interfax, Russia
Feb 6 2014
IMF could lend Armenia $125 mln under new program
YEREVAN. Feb 5
The International Monetary Fund (IMF) and the Armenian authorities
have reached an agreement to start a new Extended Fund Facility (EFF)
program, in the framework of which Armenia is to receive loans of
82.21 million SDR, or around $125 million, in 2014-2017, the IMF said
in a press release.
The 38-month program will be submitted to the fund's executive board
for consideration in early March, the IMF said.
"The objectives of the IMF-supported program that concluded last July
were largely achieved. These included restoring fiscal and external
sustainability, preserving financial stability, restoring growth, and
reducing poverty," the press release quotes IMF Mission Chief for
Armenia Mark Horton as saying.
"Growth slowed significantly in 2013, and the external current account
deficit and dollarization continue to be high, so that Armenia is
vulnerable to shocks. Poverty and unemployment also remain high,"
Horton said, adding that "in light of these challenges, the
authorities have requested a new IMF arrangement. Key objectives are
to safeguard sound public finances and provide more space for
growth-enhancing and poverty reducing spending, to continue monetary
and financial sector policies that strengthen resilience and buffers,
and to promote greater competition, competitiveness, and regional
integration, and thereby, higher investment, exports, and growth."
The fund's executive board approved the seventh and last tranche for
55 million SDR ($84 million) for Armenia on July 1, 2013, meaning
overall borrowing in the three-year EFF/ECF program totals SDR 266.8
million (approximately $410 million), the IMF said.
The IMF said it forecast Armenia would have a budget deficit of 2.3%
of GDP in 2014, falling to 2% in 2015 and 1.8% in 2016-2017. It
estimates the deficit was less than 1% of GDP last year.
The Armenian Finance Ministry has said the budget deficit was 0.6% of
GDP last year, way below a targeted 2.6%.
The parliament has approved a 2014 budget with a deficit of 2.34% of GDP.
Kh pr of
Feb 6 2014
IMF could lend Armenia $125 mln under new program
YEREVAN. Feb 5
The International Monetary Fund (IMF) and the Armenian authorities
have reached an agreement to start a new Extended Fund Facility (EFF)
program, in the framework of which Armenia is to receive loans of
82.21 million SDR, or around $125 million, in 2014-2017, the IMF said
in a press release.
The 38-month program will be submitted to the fund's executive board
for consideration in early March, the IMF said.
"The objectives of the IMF-supported program that concluded last July
were largely achieved. These included restoring fiscal and external
sustainability, preserving financial stability, restoring growth, and
reducing poverty," the press release quotes IMF Mission Chief for
Armenia Mark Horton as saying.
"Growth slowed significantly in 2013, and the external current account
deficit and dollarization continue to be high, so that Armenia is
vulnerable to shocks. Poverty and unemployment also remain high,"
Horton said, adding that "in light of these challenges, the
authorities have requested a new IMF arrangement. Key objectives are
to safeguard sound public finances and provide more space for
growth-enhancing and poverty reducing spending, to continue monetary
and financial sector policies that strengthen resilience and buffers,
and to promote greater competition, competitiveness, and regional
integration, and thereby, higher investment, exports, and growth."
The fund's executive board approved the seventh and last tranche for
55 million SDR ($84 million) for Armenia on July 1, 2013, meaning
overall borrowing in the three-year EFF/ECF program totals SDR 266.8
million (approximately $410 million), the IMF said.
The IMF said it forecast Armenia would have a budget deficit of 2.3%
of GDP in 2014, falling to 2% in 2015 and 1.8% in 2016-2017. It
estimates the deficit was less than 1% of GDP last year.
The Armenian Finance Ministry has said the budget deficit was 0.6% of
GDP last year, way below a targeted 2.6%.
The parliament has approved a 2014 budget with a deficit of 2.34% of GDP.
Kh pr of