WORLD BANK SUPPORTS ARMENIA’S RETURN TO FLOATING EXCHANGE RATE POLICY

ARKA
March 3, 2009

YEREVAN, March 3. /ARKA/. The World Bank (WB) voiced its support to
Armenia’s return to the policy of floating currency exchange rate
and the required measures to ensure the transfer.

Adjusting the rate is necessary for improving Armenia’s competitiveness
and mitigating global shock effects, says the press release of WB
Yerevan Office.

Armenia is quite strong in resisting the effects of the global
economic crisis owing to its balanced macroeconomic policy, low level
of national debt and effective banking system, says the press release.

According to the report, the World Bank group will continue its
assistance to Armenia in the scope of cooperation strategy for
2009-2012 through $525mln worth loan programs of the International
Bank for Reconstruction and Development (IBRD) and the International
Development Agency (IDA).

Apart from this, International Financial Corporation (IFC) expressed
its readiness to substantially expand its cooperation with banks and
other organizations of Armenia.

The policy followed by Armenia to ensure macroeconomic stability and
form free market produced considerable economic results and the WB
is ready to further support the reforms in Armenia, says the report.

Tuesday, the Central Bank of Armenia reported restraining its
intervention on the currency market and returning to floating rate
policy.