ARMENIA’S CENTRAL BANK LOWERS REFINANCING RATE TO 7.25%

Interfax
Dec 4 2008
Russia

The Central Bank of Armenia has decided to lower the refinancing rate
from 7.75% to 7.2%, Prime Minister Tigran Sarkisian said a government
meeting on Thursday.

This measure is being taken to stimulate the country’s economic
growth. Sarkisian added that external inflation pressures had sharply
fallen recently and the refinancing rate decrease was the first for
the Central Bank in 2008.

"This means that instruments that will spark economic growth are
becoming a priority for the government," he said.

Sarkisian said that even in light of the world economic crisis,
the Armenian budget for 2009 includes quite ambitious macroeconomic
forecast with GDP growth put at 9%.

In 2009, the Armenian government intends to boost expenditures on
infrastructure, capital construction and reconstruction of areas that
have suffered from earthquakes. "We should step up negotiations with
international organizations and state partners for raising additional
funds to stimulate economic growth," Sarkisian said.