IMF FORECASTS 1.5% ECONOMIC DECLINE IN ARMENIA THIS YEAR
Noyan Tapan
M arch 4, 2009
YEREVAN, MARCH 4, NOYAN TAPAN. After implementing a monitoring in
Armenia, the IMF experts said that the global financial and economic
crisis has had a negative impact on Armenian economy, the IMF’s
Resident Representative in Armenia Nienke Oomes said at the March 3
press conference.
She announced that the IMF forecasts a 1.5% economic decline in
Armenia this year. According to her, Armenia’s exports fell by 44%
in 2008 as compared with 2007. The annual growth of remittances from
abroad made 35% in recent years, whereas their amount declined by 25%
in January 2009 on the same month of 2008. N. Oomes noted that the
main reason is that Russia currently has serious economic problems,
whereas most of remittances sent to Armenia are from Russia.
The IMF official said that the sharp fall in copper and molybdenum
prices in international market have also affected negatively
Armenia. "GDP growth has slowed down considerably in Armenia: it
amounted to 7% in 2008 as compared with 14% in 2007. 8% inflation
is forecast by late 2009, which is not a very bad index," N. Oomes
said. She underlined that support of international structures is of
great importance under such conditions.
To recap, the Managing Director of the IMF Dominique Strauss-Kahn will
propose that the IMF Executive Board approve a 540 million Stand-By
Arrangement with Armenia. If the Executive Board accepts that proposal
on March 6, Armenia will receive 239 million USD next week. The credit
will be provided at 1.54% interest rate for a 5-year period, with
a grace period of 3 years. The credit will be given to the Central
Bank of Armenia for replenishment of its foreign currency reserves.