Armenia’s state debt’s unit weight to GDP may reach 46 per cent by 2011, Ninke Omes, IMF permanent representative to Armenia told a news conference today. According to IMF estimations, that showing would not surpass the ultimate level remaining less than 50 percent, Ninke Omes said.
According to her, that showing is equal to 18 per cent in 2009 and will grow to 30 per cent in 2010. “Armenia has revealed itself as a conscientious payer, and I am sure Armenia can pay off its debts, particularly because the government of Armenia implements a right anti-crisis policy,” she said.
The International Monetary Fund’s executive board Monday approved increasing the loan to Armenia to $822.7 million (SDR 533.6 million) to help the country meet increasing external financing needs. The 28-month standby facility was expanded from the $540 million agreement Armenia obtained in March to cope with the global economic crisis. The board also approved the immediate disbursement of $158 million (SDR 102.7 million), bringing the total amount released to about $400 million.
The Board also granted a waiver of performance criteria on net banking system credit to the government and the program’s fiscal balance. As part of the revised program, Armenian policy makers agreed to ease monetary and fiscal policy to help spur demand. Additional financial assistance from IMF will help cover Armenia’s growing financing needs.
The program envisages an easing of monetary and fiscal policy to mitigate the severity of the crisis, while laying the ground for future fiscal consolidation primarily through one-off investment expenditures and measures to strengthen tax policy and administration.
