IMF PROGNOSES 1.2% GROWTH OF ECONOMY IN ARMENIA IN 2010

ARKA
Oct 12, 2009

YEREVAN, October 12. /ARKA/. IMF prognoses 1.2% growth of economy in
Armenia in 2010 with economic decline of 15% in 2009, said Ambroise
Fayolle, Executive Director of IMF during the press-conference on
Monday in Yerevan.

"The crisis had affected Armenian economy greatly. According to the
prognosis of the Funs, economic decline in the country will make 15%,
foreign investments and foreign transfers have been reduced, as well
as tax entries which weakened the payment balance and the volume of
state resources", said Fayolle.

He said that IMF is more optimistic in this issue than the Government
of Armenia.

"Armenia is one of the countries which are having great difficulties
after the crisis. We hope that we will be mistaken in the prognosis
of decline of economy in 2009 and the decline will be less than our
prognosis", said Fayolle.

He said that in this context IMF and other international funding
organizations assisted Armenia in overcoming financial difficulties.

Particularly, at the beginning of the year IMF approved the cooperation
program of $500 million, after which in June by the decision of the
Board of Directors the amount was increased up to $823 million.

"The given resources will help Armenian authorities to soften the
consequences of crisis, especially in maintaining and implementation
of the whole volume of20social payments to vulnerable population,
as well as parallel implementation of set of reforms", said Fayolle.

As to the prognosis for 2010, the Executive Director mentioned that
on the account of the implemented policy of the Government of Armenia,
monetary-credit and tax-budgetary policy and international assistance,
Armenia will rehabilitate and by the results of 2010 an increase of
about 1.2% will be recorded.

He said that inflation will be in the frames of the indicator envisaged
by the Government of Armenia – 4% (±1.5%). According to the prognosis
of the Government of Armenia economic decline in the country by
the results of 2009 will be 12-15% and in 2010 an increase of 1%
is expected.