ARMENIA’S ECONOMY REMAINS STRONG AMID GLOBAL ECONOMIC RECESSION: IMF

ARKA
Nov 19, 2008

YEREVAN, November 19. /ARKA/. The worsened global macroeconomic outlook
has increased uncertainty, but Armenia is in a strong position to
withstand the impact of the global economic downturn, IMF Deputy
Managing Director and Acting Chair Murilo Portugal said.

The Executive Board of the International Monetary Fund (IMF)
has approved a three year, SDR 9.2 million (about US$13.6 million)
arrangement under the Poverty Reduction and Growth Facility (PRGF) for
the Republic of Armenia to support the government’s economic program
through 2011. The decision enables the country to draw an amount
equivalent to SDR 1.31 million (about US$1.9 million) from the IMF.

After the successful conclusion of its third PRGF-supported program
in May 2008, Armenia’s economic performance has remained very
strong, Portugal said, adding the economic progress has contributed
significantly to poverty reduction.

"Inflation has increased in the wake of rising international food and
fuel prices and growing domestic demand pressures, although it remains
lower than in other CIS countries. Adherence to prudent macroeconomic
policies and the progress made in structural reforms has helped to
achieve these results," the IMF chair was quoted saying.

He stressed the importance of focusing on business environment
and domestic competition. "In this regard, the completion of the
unfinished tax policy20and administration reform agenda is particularly
important," Portugal concluded.

On May 19, IMF summed up the sixth monitoring of Armenia’s
macroeconomic indicators. The monitoring was part of the PRGF
Program. Allocations of IMF for Armenia’s poverty reduction program
total SDR 23million ($37.3 million).