Armenia may receive remaining IMF loans in 2010 and 2011

YEREVAN, November 12, /ARKA/. IMF Resident Representative to Armenia, Nienke Oomes, said today Armenia will get the remaining part of IMF loans in 2010 and in the first half of 2011, given that it fulfils all the assumed obligations.

In June, 2009 tThe Executive Board of the International Monetary Fund completed the first review of Armenia’s economic performance under a Stand-By Arrangement (SBA) and approved an increase in the IMF’s financial support to an amount equivalent to SDR 533.6 million (about US$822.7 million; or 580 percent of Armenia’s quota.

Speaking at a news conference today Nienke Oomes said among other things, the government should improve its taxation legislation and impose, particularly, a customary taxation regime for tobacco products and petrol.

She said also Armenia’s next year budget deficit will make 5.8% of the GDP (7.5% in 2009). At that, she said, the government will have to gradually reduce the deficit level in the next years, because it will have to repay its debts.

Regarding Armenia’s foreign debt, she said it gets critical when the debt to GDP ratio exceeds 50 percent. Before the crisis this ratio was 15%, now it has risen to 30%. She said the government has accepted IMF’s conditions for implementation of actions which will secure economic progress. -0-