Interfax, Russia
May 29 2009

Armenian govt increases 2009 budget deficit to 7.5% of GDP from 5%

YEREVAN May 29

The Armenian government has revised the upper boundary of the budget
deficit in 2009 to 7.5% of GDP from 5%.

In presenting the draft resolution to increase the budget deficit,
Finance Minister Tigran Davtian said negative trends in the country’s
economic development had made it necessary to raise the deficit.

Intense talks with donors have provided hope that Armenia can attract
some "serious" funds in the near future to cover its deficit and
battle the crisis, he said.

Amendments to the law on the 2009 budget will be submitted to
parliament in the near future, he said.

Armenia’s budget deficit totaled 1.5 billion dram in 2008, or 0.04% of
GDP.

The International Monetary Fund forecasts Armenian GDP to contract 5%
in 2009, the largest drop among the Trans-Caucasus and Central Asian
nations (previously the IMF forecast GDP to decline 1.5% in 2009).

Growth will be nil in 2010 and positive in 2011, the IMF said.