Government of Armenia should not reduce expenses during crisis – IMF

13.11.2009 19:20
Government of Armenia should not reduce expenses during crisis – IMF

YEREVAN, November 13. /ARKA/. Government of Armenia should maintain expenses and even increase them for stimulation of economy growth during crisis”, said Nienke Oomes, Permanent representative of IMF in Armenia during the press-conference on Thursday.

“IMF considers that it is a right policy to take credits and spend them on the growth of economy”, she said. From $150 million provided by IMF in 2009, Government of Armenia allocated monetary means for replenishment of budget deficit.

It is new for IMF as the resources of the Fund are not envisaged for funding of certain projects or investments and serve for replenishment of currency reserves of the country.

“Taking into account world economic crisis, we allow some countries, including Armenia to use a part of credit means for the expenses of the government”, said Oomes. The government planned to reduce some budget expenses but IMF considered that it is a bad idea during economic crisis.

If the government performs liabilities of IMF on the improvement of the situation in Armenia, in 2010 IMF will allow to use another $150 million from expenses allocated by IMF. Oomes said that during 9 months of 2009 compared with the same period of last year, state expenses were reduced by 13%, tax entries by 17% (compared with the same period of 2008).

During 9 months of 2009, current expenses of the government increased by 11.6%, capital expenses by 22.6%. According to the decision of Executive Board of IMF adopted in June 2009, financial support of IMF to Armenia increased by $540 million up to $820 million, $480 of which are already transferred to Armenia. -0-


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