Wednesday, December 14 2011 17:16
IMF Executive Board approves a waiver for non-observance of the end-June 2011 performance criterion on the Central Bank of Armenia's net domestic assets
ArmInfo. The Executive Board of the International Monetary Fund (IMF) has completed its third review of Armenia's economic performance under a program supported by Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. In concluding the review, the Board approved a waiver for non-observance of the end-June 2011 performance criterion on the Central Bank of Armenia's net domestic assets (NDA), modification of end-December 2011 performance criteria for net international reserves and NDA, and revision of the NDA performance criterion to include a symmetrical adjustor on external financing.
"Fiscal policies have been prudent, with the budget deficit reduced significantly again in 2011, and further consolidation planned for 2012 and beyond. This should help ensure fiscal and debt sustainability and reduce vulnerabilities. The 2012 tax package is welcome, as it will ease the adjustment burden on spending. Further measures are expected in the forthcoming tax strategy paper", Ms. Nemat Shafik, Deputy Managing Director of the IMF, said.
The IMF experts think that structural reforms will help strengthen growth and contribute to external adjustment. Broad-based reforms should aim at enhancing the business environment and promoting competitiveness, greater productivity, and higher exports. While progress is being made, a decisive breakthrough is needed to reduce regulation, improve transparency and evenhandedness, and promote domestic competition.
According to the CBA, over Q3 2011 the total assets of the Central Bank of Armenia were up 11% to $2.789 bln or 1.038 trln AMD, 75.3% of which fell on foreign exchange assets. Over the period under review, the foreign exchange assets rose by 9.8%, and AMD assets - by 14,.%. In the structure of foreign exchange assets and liabilities, quarterly decline was fixed for the funds in the IMF (by 2%). The gross foreign assets of Armenia grew by 9.7% to $1955.1 mln. The net foreign assets grew by 9.1% to $1228.964 mln.
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