ARMENIAN CENTRAL BANK: COORDINATION OF MONETARY-CREDIT AND FISCAL POLICY IMPORTANT

ARKA
Nov 14, 2008

YEREVAN, November 14. /ARKA/. The Central Bank of Armenia (CBA)
attaches importance to coordination of the monetary and credit and
fiscal policy to ensure macroeconomic stability in the country in 2009,
the CBA Chairman Artur Javadyan said in presenting CBA’s conclusion
on the 2009 draft state budget in the parliament Thursday.

Particular importance will be attached to coordination of the policies
in case of continuous price rise in consumer markets despite the
reduction in the 2009 state budget, Javadyan said. The coordination
will allow avoiding undesirable fluctuations of interest rates and
exchange rates through more efficient management of bank liquidity.

Javadyan presented basic indicators of Armenian state budget for the
next year and paid particular attention to taxes. The share of taxes
in the Gross Domestic Product (GDP) is to be 17.4% in 2009, he said. A
0.4pct annual GDP growth is planned. The inflation level under the
state budget – 4% ± 1.5% – is realistic, the CBA Chairman said.

Javadyan reported that the Central Bank intends to invest 6bln Drams
in the authorized stock of the All-Armenian Bank and 3bln Drams in
the capital of Financial Development Organization in 2009.

Under Armenian draft state budget for 2009, budget revenues are to
total 905.4bln Drams, on-budget expenditures 945.4bln Drams with a
deficit of2040bln Drams. GDP growth is expected to be 9.2% by the end
of 2009 (10% in 2008) with inflation at 4% (±1.5%). Dram exchange rate
is planned at 302.4Drams for $1 in the 2009 draft state budget.

–Boundary_(ID_mX59wvttwZyKqnlekHr9Cg)–