IMF REDUCES ITS ASSISTANCE TO ARMENIA FOR THE NEXT THREE YEARS

ArmInfo
2008-09-16 17:54:00

ArmInfo. IMF will provide Armenia with $14mln-15mln in the framework
of its new three-year PRGF program, IMF Mission Chief for Armenia
Marta Castello-Branco said during a press-conference in Yerevan today.

The new program was discussed with the Government of Armenia Sept
3-16 2008.

Castello-Branco hopes that it will be submitted for the consideration
of the IMF Executive Board by the end of this year.

The new assistance will be provided on preferential terms. The program
will be monitored twice a year. PRGF is aimed at reducing poverty and
completing reforms in the field of tax and customs administration. In
the coming three years poverty rate in Armenia is supposed to be
reduced from present 26.5% to 20%. Armenia will receive less money
because it has risen from the group of countries with low incomes to
the group of countries with medium incomes.

The total cost of PRGF 2006-2008 was 23mln SDR ($37.3mln). The loans
are provided to poor countries for 10 years at 0.5% a year with grace
period of 5.5 years.