IMF hails Armenia’s economic progress

Agence France Presse — English
July 21, 2005 Thursday 8:48 PM GMT

YEREVAN July 21 — Armenia has made impressive economic progress
over recent years and the International Monetary Fund will continue
to assist the former Soviet republic on its path toward reforms,
a top IMF official said late Thursday.

“Armenia is on a promising path toward sustained high growth and the
alleviation of poverty,” said IMR deputy managing director Augustin
Carstens.

“I think this is a major achievment,” he added.

Carstens noted that the Armenian economy has shown a “very successful
performance” during the last three years due to “a good macro-economic
policy.”

“The IMF stands ready to continue to assist Armenia with policy and
technical advice, as well as financial support in implementing its
reform agenda,” he said.

The IMF last May approved a new three-year program aimed at reducing
poverty and stimulating growth, which involves granting the Caucasus
nation 34 million dollars (28 million euros) worth of preferential
credit until 2008.

During the first six months of this year, Armenia’s gross domestic
product grew 10.2 percent compared with the same period a year earlier,
while inflation reached 1.4 percent. In 2004, the country’s economy
grew by 9.3 percent.

Carstens said poverty had been reduced to 30 percent of the population
in 2003, down from 50 percent in 1999.

However, poverty continues to plague Armenia, with many families
living at least partly on money transfers from relatives abroad.

Money transfers are expected to reach one billion dollars this year,
up 25 percent from last year.