IMF: Armenian government should keep taking bailout measures also in 2010

22.12.2009 21:22
IMF: Armenian government should keep taking bailout measures also in 2010

YEREVAN, December 22. /ARKA/. Armenian government should continue its anti-crisis policies and should continue to stimulate the economy, at least during 2010, IMF Resident Representative to Armenia Nienke Oomes said in an interview with ARKA News Agency. 

Generally, the IMF advises its member countries not to suspend the anti-crisis policies too abruptly, because this could lead to a second wave of the crisis.

“To this end, we think that in 2010 it makes sense to keep the budget deficit at a relatively high level. During a crisis, it is generally a good idea for governments to take loans and use these to stimulate the economy. When the crisis is over, these governments should then start to repay these debts. Therefore, while the economy will be recuperating in 2010, we think that it is still early to withdraw the government stimulus during the next year,” Oomes said.

She thinks if the economy will continue to recover at the same rate as now, and if a second wave of the crisis is avoided, the government should be able to stop the anti-crisis measures in 2011.

Speaking about probability of a second wave of the recession, Oomes said she found it unlikely in Armenia.

“As for the rest of the world, it depends on steps that the governments of those countries will take. If governments continue to follow the IMF’s advice and will not stop their anti-crisis measures too quickly, then it should be possible to avoid a second wave of the crisis in 2010. However, different economists express different views on this issue.”.-0--

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