IMF BOOSTS ARMENIA LOAN TO $823M TO MEET FINANCING NEEDS

Wall Street Journal
22-714724.html
June 22 2009

WASHINGTON (Dow Jones)–The International Monetary Fund’s executive
board Monday approved increasing the loan to Armenia to $823 million
to help the country meet increasing external financing needs.

The 28-month standby facility was expanded from the $540 million
agreement Armenia obtained in March to cope with the global economic
crisis. The board also approved the immediate disbursement of $158
million, bringing the total amount released to about $400 million.

As part of the revised program, Armenian policy makers agreed to ease
monetary and fiscal policy to help spur demand.

"The additional financial assistance from the Fund will help cover
Armenia’s growing financing needs, while the recalibration of the
authorities’ economic program will help them better respond to the
deepening downturn," said Murilo Portugal, deputy managing director
of the IMF and acting board chairman.

"The program envisages an easing of monetary and fiscal policy to
mitigate the severity of the crisis, while laying the ground for future
fiscal consolidation primarily through one-off investment expenditures
and measures to strengthen tax policy and administration," he said
in a statement.

-By Tom Barkley, Dow Jones Newswires; 202-862-9275;
tom.barkley@dowjones.com

From: Emil Lazarian | Ararat NewsPress