YEREVAN, SEPTEMBER 16, NOYAN TAPAN. Based on the progress made in the socioeconomic sphere so far, less financing will be provided to Armenia by a new program of the International Monetary Fund (IMF) as compared with the previous programs, the head of the IMF mission to Armenia Marta Castello-Branco announced at the September 16 press conference. In her words, under the previous three-year program of IMF that finished in May 2008, Armenia achieved a two-digit economic growth, a one-digit inflation and considerable poverty reduction. She said that the new IMF program envisages providing assistance to Armenia for improving administration and implementing tax policy reforms. The purpose of the program is to make the fiscal policy a most efficient instrument of demand management, strengthening the coordination of work of the bodies dealing with fiscal and monetary-credit policies. M. Castello-Branco announced the results of IMF studies on Armenia, based on which Armenia ensured a stable GDP growth but inflation pressures remain considerable. It was mentioned that so far the conflict between Georgia and Russia has not had a negative impact on the prospect of Armenia's economic growth, and if the tension is reduced, it will be possible to ensure 10% real growth. It is expected that by late 2008 inflation will make 7.5% due to tightened monetary-credit and fiscal policies, and the recent decline in international food and fuel prices. According to IMF studies, the sustainable economic growth will continue, while inflation will be within the 4% target of the Central Bank of Armenia (CBA) within the next few years.

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