The Executive Board of the International Monetary Fund (IMF) has approved a nearly $13.6 million, three-year arrangement under the Poverty Reduction and Growth Facility (PRGF) for Armenia “to support the government’s economic program through 2011.”
In a press release disseminated on Wednesday the IMF said “the decision will enable the Republic of Armenia to draw an amount equivalent to about $1.9 million immediately.”
According to the report, Armenia’s PRGF-supported economic program builds on the authorities’ Sustainable Development Program (SDP) and the main goals of the new program are to sustain and broaden economic growth, and further reduce poverty.
Following the Executive Board’s discussion, IMF Deputy Managing Director and Acting Chair Murilo Portugal stated: “The worsened global macroeconomic outlook has increased uncertainty, but Armenia is in a strong position to withstand the impact of the global economic downturn.”
“A gradual deceleration of growth in Armenia may help dampen inflationary pressures. It may also contribute to reducing the external current account deficit, which has increased on the back of rising imports and sluggish exports, despite strong remittance inflows. Medium-term prospects, although highly uncertain, remain benign in view of favorable investment opportunities,” he added.