Conclusion of an IMF Staff Mission to Armenia

The IMF issued a statement at the Conclusion of an IMF Staff Mission to Armenia which stated:

“An International Monetary Fund (IMF) mission led by Mr. Mark Horton visited Yerevan during September 7 - September 20 to conduct discussions for the Third Review of the Extended Fund Facility (EFF)/Extended Credit Facility (ECF) arrangements. At the conclusion of the visit, Mr. Horton issued the following statement:

“Discussions were productive and there was progress on the set of policies and actions for the rest of 2011 and 2012. Further discussions will be conducted in Washington, DC during the Annual Meetings of the IMF and the World Bank later this week.

“Overall macroeconomic conditions have improved. As a result of a rebound in the agricultural sector and dynamic industry and services sectors, growth outturns are set to improve this year in line with our previous projection of 4.6 percent growth.

“Program performance remains broadly satisfactory. The fiscal balance has continued to improve, with the overall deficit expected to come down to below 4 percent in 2011 from 5 percent in 2010. In order to ensure debt sustainability, the deficit is expected to continue to be reduced in 2012.

“The Central Bank continues to show a commitment to a flexible exchange rate and the inflation targeting regime, engaging in limited foreign exchange interventions to smooth volatility. Central Bank also continues to further improving tools to monitor risks in the banking system.

“The structural agenda continues to progress, with signs of improvement in the business environment mainly in the area of inspection, competition legislation, business registration processes, and VAT refunds.

“The mission met with President Serzh Sargsyan, Prime Minister Tigran Sargsyan, Minister of Finance Vache Gabrielyan, Central Bank Governor Arthur Javadyan, Minister of Economy Tigran Davtyan, Minister of Energy and Natural Resources Armen Movsisyan, Minister of Agriculture Sergo Karapetyan, as well as senior government officials, representatives of the international community, the banking and business sectors, and civil society. The mission would like to thank the authorities and the citizens of Armenia for their warmth and hospitality.”