IMF, ARMENIA NEGOTIATING NEW LOAN – IMF EXECUTIVE DIRECTOR

Interfax
Feb 17 2009
Russia

The International Monetary Fund (IMF)

is in intensive talks with the Armenian government to grant a loan
to the country in order to soften the effects of the global economic
crisis, IMF Executive Director Age Bakker said during a lecture on
crisis at the Yerevan State University on Tuesday.

The loan is meant to reduce the trade deficit, which rose due to the
negative effect of the global economic crisis, he said. The loan sum
is currently being discussed, the IMF official said.

The talks involve Armenia’s prime minister and central bank chief,
economic and finance ministers, he said.

The IMF’s Poverty Reduction and Growth Facility (PRGF) is already
operating in Armenia after being approved by the Fund last November,
he recalled. The situation has radically changed since then, and
now there is a need for additional funding, because the loan granted
earlier is too small [SDR 9.2 million under the PRGF arrangement, or
around $13.6 million]. The new loan will be much bigger, Bakker said.