IMF TO ALLOCATE $540 MILLION FOR ARMENIA TO STABILIZE PAYMENT BALANCE

ARKA
March 3, 2009
YEREVAN

The International Monetary Fund (IMF) plans to earmark $540mln to help
Armenia stabilize its payment balance, IMF Permanent Representative
in Armenia Ninke Oomes reported.

The annual interest rate of the five-year loan is 1.54%. The credit
funds will be sent to the Central Bank of Armenia (CBA) and will help
replenish the country’s foreign-currency reserves, Oomes said.

IMF Managing Director Dominique Strauss-Kahn today urged the fund’s
Executive Board to approve a 28-month $540mln stand-by arrangement
for Armenia.

According to Oomes, the application will probably be approved on
March 6 and the fund will start earmarking the funds. The first
$240mln will be paid flat next week.

The funds are enough to boost Armenia’s payment balance, Oomes said,
citing IMF experts’ forecasts.

With $525mln worth WB assistance and $500mln Russian loan, Armenia
will get a strong financial support, the IMF permanent representative
concluded.