Decision to redouble IMF loans not to have a direct impact on Armenia

PanARMENIAN.Net - The IMF Executive Board agreed last week to redouble loan quotas provided to poor countries under the Poverty Reduction and Growth Facility (PRGF) and Exogenous Shocks Facility (ESF) programs, thus assisting low income countries which suffered great losses as a result of the global economic recession.

In this connection, Ninke Omes, IMF permanent representative in Armenia, noted that such decision will not have direct impact on Armenia, as the country has signed a Stand-By Arrangement with IMF, and the above-mentioned decision does not apply to countries benefiting from IMF funding programs.

Earlier, the IMF Executive Board approved Stand-By Arrangement envisaging a sum of SDR 368 million for Armenia (540 US Dollars). The sum will be allocated within a period of 28 months.

The lump sum to be allocated under the program comprises SDR 161,5 million (about 237 million US Dollars). The remaining sum will be allocated in 9 branches, to be included in quarterly reports.

The arrangement will provide exclusive access to IMF resources, making up 400% of quotas from Armenia. The resources are allocated for the term of 5 years, with a 3 years' grace period at an annual interest rate of 1,54 %.