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WB CHARACTERIZED ARMENIAN ECONOMY AS `GROWL OF CAUCASIAN TIGER´

IMF Executive Director, Dr. Jeroen Kremers expressed satisfaction with the economic growth index fixed in Armenia though Armenia’s another donor – the World Bank, earlier voiced doubt on the index published. “The Armenia economy scores two-digit growth five years successively. It can become a record index at the international level”, Mr. Kremers stated during a press conference in Yerevan adding that the three-year report on Armenia’s implementing the Poverty Reduction Program will be submitted to the Council of the IMF Board of Directors. “I will represent Armenia at the sitting and do not think any problems will emerge”, he said. Meanwhile, according to the IMF, the rise of tax and customs duties still remains the major problems in Armenia. To assist the resolution of the problems available the IMF will allocate $33 million credit to Armenia. “Armenia should not satisfy with the progress achieved, it should face the future and if the reforms are continued the situation will considerable improve in 5 years”, Mr. Kremers said. He added that the statistical data on the Armenian economy satisfy their demands otherwise cooperation with Armenia would be broken. However the World Bank has some doubts as regards the statistical date. In its report submitted to the present economic situation is characterized as growl of Caucasian Tiger. Despite the secrecy of the report some date penetrated into the press. Most of all doubts are cast upon the index of fuel market of Armenia. “Statistical data on the import of fuel do not reflect the real situation in the republic…Part of the fuel is imported as contraband… As result of the competition at the fuel market the society suffers great damage totaling in 1.3% of the GDP (about $60 million). The state is incapable to secure proper competitive strength,” the report says. The WB specialists gave a real estimate to the situation with corruption noting that even some high rank officials take bribes.

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