IMF ADVISES STRICTER BANKING SUPERVISION, MORE FLEXIBLE CURRENCY POLICY TO ARMENIA
ARKA
Apr 10, 2009
YEREVAN, April 10. /ARKA/. The International Monetary Fund (IMF)
advises Armenia to tighten banking supervision and implement a more
flexible currency policy to temper the impacts of the global crisis.
Speaking at a panel discussion of influence of the global financial
and economic crisis on the Armenian economy, Masood Ahmed, IMF Middle
East and Central Asia Department Director, stated that Armenia should
apply various fiscal mechanisms to protect the socially vulnerable
sections, showing common sense.
He pointed out the necessity for preparing for most unfavorable
developments because Armenia has not yet felt the full force of the
economic recession in Russia.
The IFM official pointed out that the implementation of fiscal policy
and protection of socially vulnerable sections of the population will
the major problems for the country during this year. The decrease in
money transfers to Armenia has exerted its influence.
Masood Ahmed stated that Armenia should implement a flexible exchange
rate policy to survive the global crisis.
The year 2009 is going to be a hard one for the world, which will
affect the developing countries, he said. In this context he pointed
out the necessity for reserve programs.
Masood Ahmed said that the IMF has approved a new, $540mln program
for Armenia. The funds are to be allocated during the coming fou r
years.