IMF to disburse $158 million to Armenia till weekend

PanARMENIAN.Net - The International Monetary Fund's executive board Monday approved increasing the loan to Armenia to $823 million to help the country meet increasing external financing needs.



The 28-month standby facility was expanded from the $540 million agreement Armenia obtained in March to cope with the global economic crisis. The board also approved the immediate disbursement of $158 million, bringing the total amount released to about $400 million.



As part of the revised program, Armenian policy makers agreed to ease monetary and fiscal policy to help spur demand.



Nienke Oomes, IMF New Resident Representative in Armenia said the disbursement of $158 million is expected till the weekend.



"The additional financial assistance from the Fund will help cover Armenia's growing financing needs, while the recalibration of the authorities' economic program will help them better respond to the deepening downturn," said Murilo Portugal, deputy managing director of the IMF and acting board chairman.



"The program envisages an easing of monetary and fiscal policy to mitigate the severity of the crisis, while laying the ground for future fiscal consolidation primarily through one-off investment expenditures and measures to strengthen tax policy and administration," he said in a statement.