GLOBAL FINANCIAL CRISIS WILL HAVE LIMITED EFFECT ON ARMENIA, CHAIR AND DEPUTY MANAGING DIRECTOR OF IMF SAYS
Noyan Tapan
Nov 24, 2008
YEREVAN, NOVEMBER 24, NOYAN TAPAN. Although Armenia is in worse
conditions as compared with its neighbors, in recent years the country
has achieved high indices of economic programs’ implementation, a
high economic growth and low inflation, and has considerably reduced
the level of poverty, the Chair and Deputy Managing Director of
the International Monetary Fund (IMF) Murilo Portugal stated at the
November 22 press conference to finalize the results of his visit
to Yerevan.
According to him, the fact that unlike other countries, Armenia has
maintained the rate of its economic growth this year shows that the
global financial crisis has a limited effect on Armenian economy,
while its financial stability has no vulnerable aspects. Besides,
the Armenian banks continue to make profits, the level of their
capitalization and liquidity remains high, and the inflow of capital
investments and remittances is continuing.
In the opinion of M. Portugal, by approving the the program of a 14
million dollar support on November 17, the IMF asserted its trust
in Armenia, and if there is a need to allocate additional sums, it
will be done. The purpose of the above mentioned allocation is to
help Armenia with its integration into global economy. The IMF will
also continue providing advisory help to the Armenian authorities.
M. Portugal said that some dependence of the Armenian economy
on remittances from abroad and foreign investments is dangerous
as it may have negative consequences if the economic situation
deteriorates in countries that represent a source of money inflow for
Armenia. According to the IMF official, in the first half of 2008,
75% of remittances from abroad and 70% of direct foreign investments
in Armenia were those from Russia. However, there have been no signs
of a decline in foreign investments or discontinuation of investment
projects in Armenia.
M. Portugal announced that by IMF forecasts, in 2009 economic growth
will make 8% in Armenia, which is lower than in recent years but
higher than the indices of many other countries. By IMF forecasts,
the overall economic growth of developed countries will decline,
which has not happened since the 1970s. M. Portugal explained that the
15-month global financial crisis reached its culmination in October
of this year when a number of countries announced their measures on
stabilization, but it will be possible to speak about their results
in the future. He said the first signs of getting out of the crisis
will appear in late 2009.