PanARMENIAN.Net

IMF council approves a $540 mln. loan to Armenia
07.03.2009 18:58 GMT+04:00

/PanARMENIAN.Net/ The Executive Board of the International Monetary
Fund (IMF) approved a 28-month SDR 368 million (about US$540 million)
Stand-By Arrangement for Armenia to support the country’s program to
adjust to the deteriorated global outlook, restore confidence in the
currency and financial system, and protect the poor. The approval
makes the amount equivalent to SDR 161.5 million (about US$237
million) immediately available and the remainder in nine installments
subject to quarterly reviews. The Stand-By Arrangement entails
exceptional access to IMF resources, amounting to about 400 percent of
Armenia’s quota. It was approved under the Fund’s fast-track Emergency
Financing Mechanism procedures.

The authorities’ program is based on a consistent set of measures
regarding exchange rate, monetary, financial, and fiscal policies, as
well as continued structural reforms.

Key elements include: return to a flexible exchange rate regime,
strengthening of the financial sector to maintain stability and
confidence, a revision of fiscal priorities to maintain macroeconomic
stability, while protecting social outlays and public investment, in
light of the expected revenue shortfall.

Armenia’s gross external financing requirements are projected at about
US$1.6 billion for 2009, and will remain elevated through 2011, albeit
with a slight downward trend. The Stand-By Arrangement will cover a
large share of the country’s 2009-2011 financing gap. Additional
financing will be provided by Armenia’s donors and international
partners, including the World Bank, the IMF press release said.

From: Emil Lazarian | Ararat NewsPress