IMF Executive Board approves $50.7 million disbursement for ArmeniaJune 18, 2012 - 17:22 AMT PanARMENIAN.Net - The Executive Board of the International Monetary Fund (IMF) completed its fourth review of Armenia’s economic performance under a program supported by Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. The decision enables the authorities to draw an additional SDR 33.5 million (about US$50.7 million), bringing total disbursements under the arrangements to SDR 178.3 million (US$269.8 million). The three year SDR 266.8 million (US$403.8 million) EFF and ECF arrangements with Armenia were approved by the IMF’s Executive Board on June 28, 2010. The Board's decision on the fourth review was taken on a lapse of time basis.1 Adherence to the policies agreed under the Fund-supported program has played an important role in helping Armenia restore solid growth. The outlook for 2012 and the medium-term is positive, but not without risks, particularly stemming from Europe and affecting Armenia via Russia. Growth picked up to 4.6 percent in 2011, but is expected to moderate to just below 4 percent in 2012. Inflation has come down significantly over the past year and should remain near the central bank’s target of 4 percent. Credit growth remains strong. The Board is also considering a Financial Sector Stability Assessment (FSSA) for Armenia, under the Financial Sector Assessment Program of the IMF and the World Bank. The 2011 fiscal deficit was well below program targets, reflecting restrained spending. The deficit is likely to be moderately higher in 2012, but still in line with the program, and with higher expected revenues allowing for increases in priority spending. The external current account deficit has declined significantly, helped by the fiscal adjustment, but remains high. The authorities plan to implement further business environment and tax and pension reform measures. Together with enhanced exchange rate flexibility, these actions should improve productivity and support growth and diversification of exports, according to a press release, press service of IMF Armenia Office reported. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Narek Manasyan wins European Boxing Championships silver for Armenia Armenia’s Narek Manasyan (92kg) won Armenia’s second silver medal at the European Boxing Championships 2024 on April 28. Blinken urges Azerbaijan to continue negotiations with Armenia Secretary of State Antony J. Blinken has urged Azerbaijani President Ilham Aliyev to continue negotiations with Armenia. Pashinyan, Blinken talk Armenia-U.S. ties over the phone Prime Minister Nikol Pashinyan had a phone conversation with US Secretary of State Antony Blinken on April 28, Pashinyan’s office reports. Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. |