Armenia May Receive New IMF Credit

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Armenia May Receive New IMF Credit

YEREVAN (Noyan Tapan)--In connection with the IMF delegation's visit to Armenia, Minister of Finance and Economy Vardan Khachatrian said Armenia is likely to receive a new PRGF credit from the International Monetary Fund in 2001-2003. The credit will be aimed at reduction of poverty and economic growth and will be about $90,000,000.

 

The head of the delegation, European Director of IMF CIS Program Thomas Wolf said that the memorandum on "Armenia's financial and economic policy" may be approved at the IMF Washington-based Headquarters in March-April 2001. Thereafter, a third of the credit may be expected.

 

The three-year program was agreed upon with the IMF after 15-month negotiations. It is supposed to promote the implementation of the Armenian government's program titled "Poverty Reduction Strategy".

 

The credit will be allocated for ten years at the annual interest rate of 0.5 percent, the grace period being three years. According to the minister, the sum will be directed to the replenishment of external reserves of the Central Bank to assist it in implementing the monetary policy and inflation management. According to Khachatrian, to achieve economic growth, macroeconomic stability and low inflation and stable prices are necessary.