IMF loan initial transfer disbursed this weekMarch 13, 2009 - 21:05 AMT PanARMENIAN.Net - A new IMF crisis relief program was launched in Armenia, IMF Resident Representative in Armenia Ms. Nienke Oomes said at a meeting with students of Yerevan State University.The International Monetary Fund approved a $540 mln Stand-By-Arrangement for 28 months. First $240 mln was disbursed this week. Remaining $300 will be disbursed in 8 quarterly installments, subject to good performance. The interest rate: first $270 mln at 1.56%, second $135 mln at 2.56%, third $135 mln at 3.56%. The loan has 5 year maturity including 3 years of grace period. The Armenian government obliged to undertake the following measure under the IMF program: return to a flexible exchange rate regime, strengthen the financial sector to maintain stability, target a fiscal deficit of around 3%, while protecting social spending and public investment. The program allows for an increase in social spending by 0.3% of GDP to protect the poor. If additional external financing becomes available becomes, the program allows for a $200 mln increase in public investment and SME lending, bringing the deficit to around 5%. 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 | Surveying works underway in Armenia’s Kirants Surveying works are underway in the Armenian village of Kirants in the northern Tavush province. Armenia calls for prohibiting threats of attacks on nuclear facilities Armenia has raised the need for a treaty prohibiting attacks on nuclear facilities devoted to peaceful purposes. Armenia says ready to extend nuclear plant’s lifetime by 10 years Armenia has taken necessary measures to extend the lifetime of its nuclear power plant until 2036. Armenia Security Council chief traveling to Qatar Secretary of the Security Council of Armenia Armen Grigoryan will travel on a working visit to Qatar. |