By Vigen Margaryan

YEREVAN, December 15 – IMF Executive Boards approved $56 million disbursement to the Republic of Armenia as of the third review of the country’s economic performance under a program supported by the Extended Fund Facility (EFF) and Extended Credit Facility (ECF).

Nemat Shafik, Deputy Managing Director expressed the content with the Armenian authorities’ monetary policy which helped to underpin the moderation of inflation this year and the continuing post-crisis recovery.

IMF is also content with the decrease in the budget deficit in 2011, and further consolidation planned for 2012 and beyond which will ensure growth in debt sustainability by AMD 101 bln.

The Fund underlines the necessity of structural reforms in Armenia. Nemat Shafik stressed the need to reduce a decisive breakthrough, improve transparency and promote domestic competition. He also added that broad-based reforms should aim at enhancing the business environment and promoting competitiveness.

The IMF notes that Armenia faces increasing downside risks from the global environment, which may exacerbate its existing vulnerabilities. The IMF also stressed the importance of timely and prudent policy responses on the authorities’ part to ensure greater exchange rate flexibility and steadfast progress to strengthen the business environment and increase competitiveness.

Yerevan Report