IMF ANNOUNCES MANAGEMENT SUPPORT FOR $540 MILLION LOAN TO ARMENIA, WELCOMES MOVE ON EXCHANGE RATE
States News Service
March 3, 2009 Tuesday
The following information was released by the International Monetary
Fund:
Mr. Dominique Strauss-Kahn, Managing Director of the International
Monetary Fund (IMF), issued the following statement on Armenia today:
"After many years of strong economic performance, Armenia has been
adversely affected by the global economic and financial crisis. In
response, the Armenian authorities have put together a strong and
credible economic program to address the deterioration in Armenia’s
external outlook, restore confidence in the currency and financial
system, and protect the poor.
"I will therefore recommend that the IMF Executive Board approve
a request for a $540 million, 28-month Stand-By Arrangement. The
Executive Board is expected to meet to discuss the program later this
week. Armenia would be able to draw about US$ 239 million immediately
after Board approval.
"The comprehensive policy package developed by the Armenian authorities
in consultation with IMF staff includes the return to a floating
exchange rate regime, allowing the exchange rate to move in line with
market fundamentals so as to cushion the economy from the external
shocks and safeguard foreign exchange reserves.
"The authorities will also implement supporting monetary, fiscal, and
financial sector policies, and well-targeted structural reforms. They
are also taking measures to help offset the economic downturn and
mitigate the impact of the economic crisis on the poor.
"These strong measures justify the exceptional level of access to Fund
resources (equivalent to 400 percent of Armenia’s quota) and deserve
the support of the international community," Mr. Strauss-Kahn said.