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IMF approves in principle $87 mln loan for Armenia.

The International Monetary Fund has approved in principle a new three-year lending programme worth $87 million for ex-Soviet Armenia, the IMF office in the country said on Thursday.

The Poverty Reduction and Growth Facility (PRGF) is aimed at
supporting the government’s economic reform programme and efforts
to improve Armenia’s fiscal situation as well as strengthening public
finances.

The first $13 million tranche under the programme will be released
after a final decision is made by the Fund’s board in Washington,
an IMF statement said.

Under the programme, Armenia’s real annual gross domestic product growth is projected to average around six percent in 2001-2003.

Annual inflation is forecast at three percent and reserves of the
central bank at around three and one half months of imports, the
IMF said.

The government’s reforms seek to eliminate the budget deficit and
maintain a stable rate of monetary growth, the statement said.
IMF credits to Armenia since 1992 total $168million.

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