IMF HAILS COOPERATION WITH ARMENIAN GOVERNMENT

ARKA
May 14, 2009

YEREVAN, May 14. /ARKA/. IMF hails cooperation with Armenia’s
government, businesses and other structures, IMF Resident
Representative in Armenia Ninke Oomes said Wednesday during the fifth
congress of the Union of Manufacturers and Businessmen of Armenia
(UMBA).

As part of its collaboration with the Armenian government, IMF has
earmarked $240mln for Armenia from the planned $540mln and is going
to assign the rest of $300mln in two years.

Oomes stressed the role of a balanced economic policy in offering a
strong incentive to the domestic economy. She expressed grave concern
about the country’s restrained tax and budgetary policy, adding it
could lead to changes in interest rates and cause an economic slowdown.

Oomes said IMF supports the Central Bank’s flexible exchange rate
policy, adding the fund also offers technical assistance to Armenia
in executing reforms, particularly in the fiscal policy and budget
administration.

The IMF resident representative pointed out the fund’s negotiations
with Armenia’s executives over implementation of new programs in
the country.

She expressed a hope that the joint initiatives would help Armenia
reduce poverty, regain investors’ trust and weather the crisis.

IMF earmarked $240mln for Armenia in April out of the planned $540
loan to help the country tighten banking supervision. The rest of
the funds will b e evenly distributed within 28 months.

The five-year loan with three years of grace period and 1.54% interest
rate is also to help Armenia boost foreign currency reserves.