YEREVAN, MARCH 4, NOYAN TAPAN. The Managing Director of the IMF Dominique Strauss-Kahn will recommend that the IMF Executive Board approve Armenia's application for a 28-month Stand-By Arrangement of 540 million USD. In his March 3 announcement, he substantiated this decision by the fact that in response to the negative impact of the global financial and economic crisis, the Armenian authorities developed a viable and reliable economic program for addressing the problems related to deterioration of Armenia's external prospects, restoration of trust in currency and the financial system, and protection of the poor section of of the population. According to a press release of the IMF, the Executive Board is expected to convene a sitting at the end of this week in order to discuss the program. After approval, Armenia will be able to receive immediately about 239 million USD. A comprehensive package of policy was worked out by Armenian authorities that have consulted with IMF experts. The package envisages return to a floating exchange rate regime (allowing for the exchange rate to change in accordance with the fundamental principles of market in order to protect the economy from external shocks and keep the foreign currency reserves), a policy supporting the monetary, tax-budgetary and financial sectors as well as targeted structural reforms. According to the IMF, Armenian authorities are also taking measures to neutralize the economic decline and reduce the impact of the economic crisis on the poor section of the population. In the words of D. Strauss-Kahn, the resolute measures of Armenian authorities substantiate the exceptional level (400% of Armenia's quota) of accessibility of IFM resources and deserve support of the international community.

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