YEREVAN, October 19, /АRКА/. World Bank Managing Director Ngozi Okonjo-Iweala said Armenia’s economic structure must be changed to take the country out of the crisis.
“Despite the government’s correct response to the situation it is obvious that Armenia’s economy needs structural changes to ensure a way out of the crisis in future,’ she said at a news conference in Yerevan.
Ngozi Okonjo-Iweala said the crisis has revealed the dependence of Armenian economy on remittances from abroad which made 18% of its GDP before the crisis.
According to official figures, the amount of individual remittances to Armenia via banking sector in January-August 2009 dropped by 35% from a year before to $672.3 million. According to World Bank Managing Director, despite unprecedented contraction of Armenian economy the government’s response to the situation was adequate.
She said when the crisis hit Armenia its state debt was relatively low and that gave the government an opportunity to seek additional loans. Thus Russia allocated $500 million stabilization loan, the IMF has pledged a total of $822.7 million in fresh loans and the World Bank will extend $546 million in 2009-2012.
She said other governments did not have such an opportunity. She also said the government was right to maintain the level of social spending. -0-
