IMF: SHORT-TERM OUTLOOK CONTINUES TO CHALLENGE ARMENIA
By Meena Thiruvengadam
Wall Street Journal
Nov 2 2009
WASHINGTON (Dow Jones)–The International Monetary Fund has reworked
details of a loan agreement with Armenia to speed aid to the country
as it battles a deeper-than-expected downturn.
The changes allow for Armenia to immediately receive an additional
$60 million from its $822.7 million loan facility. The country,
among the hardest hit by the financial crisis in Central Europe,
already has drawn more than $400 million from the facility since it
was approved in March.
"The fall in remittances and the collapse in the construction sector
have caused a more severe economic contraction and lower fiscal revenue
than anticipated," said Takatoshi Kato, IMF deputy managing director
and acting chair.
Armenia is among the central European countries that have come to
rely on an influx of remittances, particularly those from Russia,
to sustain its economy in recent years.
The IMF is expecting Armenia’s economic output could contract by as
much as 15.6% this year.
"The short-term outlook remains challenging," Kato said. "Growth is
expected to resume gradually in 2010, although risks remain."
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;
[email protected]