IMF forecasts 1.5% economic decline in Armenia this year
04-03-2009 19:00:00 | Armenia | Economy
YEREVAN, MARCH 4, NOYAN TAPAN. After implementing a
monitoring in Armenia, the IMF experts said that the global
financial and economic crisis has had a negative impact on
Armenian economy, the IMF's Resident Representative in Armenia
Nienke Oomes said at the March 3 press conference.
She announced that the IMF forecasts a 1.5% economic
decline in Armenia this year. According to her, Armenia's
exports fell by 44% in 2008 as compared with 2007. The annual
growth of remittances from abroad made 35% in recent years,
whereas their amount declined by 25% in January 2009 on the same
month of 2008. N. Oomes noted that the main reason is that
Russia currently has serious economic problems, whereas most of
remittances sent to Armenia are from Russia.
The IMF official said that the sharp fall in copper and
molybdenum prices in international market have also affected
negatively Armenia. "GDP growth has slowed down considerably in
Armenia: it amounted to 7% in 2008 as compared with 14% in 2007.
8% inflation is forecast by late 2009, which is not a very bad
index," N. Oomes said. She underlined that support of
international structures is of great importance under such
conditions.
To recap, the Managing Director of the IMF Dominique
Strauss-Kahn will propose that the IMF Executive Board approve a
540 million Stand-By Arrangement with Armenia. If the Executive
Board accepts that proposal on March 6, Armenia will receive 239
million USD next week. The credit will be provided at 1.54%
interest rate for a 5-year period, with a grace period of 3
years. The credit will be given to the Central Bank of Armenia
for replenishment of its foreign currency reserves.