ArmenPress
Feb 4 2005

FINANCIAL POLICY HINGES ON WORLD REACTION TO STATE OF THE UNION
ADDRESS, ARMENIAN CB GOVERNOR ARGUES

YEREVAN, FEBRUARY 4, ARMENPRESS: Armenian Central Bank (CB)
governor Tigran Sarkisian presumed today that Armenia’s financial
policy in 2005 would be largely hinging on the reaction of EU, China
and Russia, as well as IMF and World Bank to US president George W.
Bush’s State of the Union address, in which he said that the budget
he’ll send to congress next week will hold the growth of
discretionary spending below inflation, make tax relief permanent,
and stay on track to cut the deficit in half by 2009.
Sarkisian, however, added that Armenia’s financial policy was
immune from drastic shifts and changes. He said the Central Bank will
come up with a statement after the end of negotiations with World
Bank and IMF officials who are arriving in Armenia somewhere in the
second half of February to discuss here release of new loans for
medium-term development projects.
Another factor that may affect Armenia’s financial policy,
according to the chairman of Armenia’s Central bank, is a decision by
the Federal Reserve to raise interest rates by a quarter of a point
to 2.50%, while the EU has maintained it at 2 percent.