YEREVAN, October 17./ARKA/. IMF’s two tranches to Armenia under the Extended Facility Fund (EFF) will amount to a total of 23.48 million SDR by the end of the year, said the head of IMF Armenia mission Mark Horton after his visit to the country on September 17-30.
The first tranche worth $17 million was provided in March 2014, and all the performance targets were achieved in the first half of the year.
The second tranche worth $17 million under an EFF arrangement is expected in December 2014.
According to the preliminary schedule, IFM Board will discuss, by the end of the year, the monitoring results, and will allocated 11.74 million SDR after approval, Horton said. This will bring the total amount of funding to Armenia under EFF to 23.48 million SDR, he said.
Horton said the programs are implemented mainly as scheduled, according to IMF press office.
There is progress in the financial reform and “open air” policies leading to lower prices for many flights. Change in the government had an impact on reforming competition and regulations, the document says.
The mission has made a preliminary conclusion about policies at the end of 2014 and 2015, which may lay groundwork for completion of the first monitoring and includes proportionate expansion of the 2015 government budget deficit to promote demand, according to the document.
Tax and budget measures will include efforts to improve capital expenditure performance, tax administration and mitigation of tax and budget risks. The Central Bank of Armenia will remain committed to the flexible rate and target inflation policies. The other reforms aim at improving the financial sector and business environment, enforcing new pension laws and ensuring stability and efficiency in energy system, Horton said as quoted by the press office.
On March 7, the IMF Executive Board approved the agreement with Armenia about 82.21 million SDR ($127.6mln or 89.4% of Armenia’s quota) under a 38-month EFF program.–0–
