ADDITIONAL BUDGET FINANCING IN ARMENIA TO TOTAL $800MLN IN 2009

ARKA
July 7, 2009

YEREVAN, July 7. /ARKA/. Additional budget financing to Armenia has
been set at $800mln, RA Minister of Finance Tigran Davtyan was quoted
as saying on Tuesday.

He cited four sources that were to allocate extra funds for Armenia’s
state budget, including the World Bank ($60mln), Asian Development
Bank ($80mln), International Monetary Fund (around $155mln) and Russia
($500mln).

The loan programs of international organizations are an attempt to
boost Armenia’s economy amid the global financial recession, the
minister added.

Thus, WB and IMF four-year allocations to Armenia reach $545mln and
$823mln respectively, with two-year assignment of ADB and Russia
totaling $140mln and $500mln respectively.

According to Davtyan, Armenia has successfully competed negotiations
with the four financial partners and will be able to draw the funds
in a couple of months.

With the country receiving the IMF two-year loan worth $305mln, WB
has approved another loan agreement with Armenia, the minister said,
adding ADB has approved a new loan program for Armenia.

Davtyan believes "the agreements will enable Armenia to fulfill budget
expenditures, as well as eliminate the tangible deficit."

Being optimistic about this year’s results, the minister stressed
that Armenia possesses enough financial resources to fulfill budget
expenditures.

According to Davtyan, part of the credit funds will be included in
the 2010 budget expenditures program.

This year, Armenia will spend some $305mln from the WB loan, carrying
forward $150mln from 2009 to 2010. Next year, the government will
earmark some 24bln drams from the Russian loan for reconstruction of
the 1998 quake-hit areas. ($1- 362.37 drams)