IMF APPROVES INCREASE IN FINANCIAL SUPPORT TO ARMENIA UP TO ABOUT $822.7 MILLION

ARKA
June 23, 2009

YEREVAN, June 23. /ARKA/. The Executive Board of the International
Monetary Fund (IMF) has completed the first review of Armenia’s
economic performance under a stand-by arrangement (SBA) and approved
an increase in the IMF’s financial support to an amount equivalent to
SDR 533.6 million (about US$822.7 million; or 580 percent of Armenia’s
quota), IMF Armenian Office reported on Tuesday.

"These decisions enable the immediate release of SDR 102.7 million
(about US$158.3 million), bringing the total disbursed to SDR 264.2
million (about US$400 million)", the press release says.

The revised arrangement will support the government’s economic program
amid a sharper-than-expected impact from the global financial crisis.

The 28-month stand-by agreement was approved on March 6.

"The key objectives of the program are to help Armenia adjust to the
external shock, maintain confidence in the currency and the financial
system, and protect the poor. The sharp contraction in economic
activity, the fall in remittances, an increase in unemployment,
and difficult conditions in credit markets require an easing of
macroeconomic policies and the implementation of several measures
to stimulate domestic demand and create new jobs", the press release
says.