National Assembly of RA, Armenia
July 28, 2006

Cooperation of International Monetary Fund and National Assembly
Continues

On July 27 the RA NA President Tigran Torosyan received James McHugh,
the Resident Representative of the International Monetary Fund in
connection with the end of the mission. Neinke Oomes, the next
Armenian representative of the IMF also participated in the meeting.

Mr. Torosyan expressed gratitude to James McHugh for the active work
during last years, distinguishing also the contribution of the IMF
and its representative in the economic achievements of Armenia. The
President of the Parliament also expressed hope that the productive
cooperation with Nienke Ooms, the new representative of the IMF, will
continue. Testifying the experience of the post Soviet countries, the
NA President noted that during the first years of independence
economic reforms, free economic relations and formation of the free
market was mainly highlighted, eventually it became obvious, that
political reforms are prompted on the foreground and their delay is
capable to obstruct economic development and progress .

In aspect to solve this problem Mr. Torosyan emphasized importance of
the further cooperation withIMF, noting, that the NA is ready to
search new forms of cooperation.

James McHugh, preparing to officiate Kirghizia, characterizing years
of the work in Armenia effective, noted, that though cooperation with
the National Assembly was always more difficult than with the
government, he always had the friend on behalf of Mr. Torosyan who
appraised both complexity of proposed reforms and also their not
populist decisions.

Importance was attached to the role of the Parliament in the
identification of development ways of the country. He informed that
in September an IMF mission will come to Armenia in order to study
the latest developments and the executive of programs. Mr. McHugh
estimated positively the two year reforms of the tax-duty sphere and
highlighted that form now on too the IMF will offer its approaches so
that the government of Armenia makes its choice. He also highlighted
that the IMF supports the policy of increase of the nominal value of
the national currency carried out by the Central Bank and understands
all the complexities generated by the large inflow of foreign
currencies to Armenia.

Highlighting the direct relation between the tax-duty policy and the
increase of nominal value of the national currency the sides
expressed readiness to find joint solutions. Nienke Ooms, that will
officiate after Mr. McHughs highlighted that he is impressed by the
indicators of economic development of Armenia and added that as the
phase of establishment of equal partner relations begins, the
termination of relations between Armenia and IMF might be discussed
in the coming period. He argued his readiness for close cooperation
with the Parliament by the important role of the National Assembly in
the resolution of new problems.

During the meeting other issues of mutual importance were also
discussed.