Yerevan, November 23 /Mediamax/. The Executive Board of the International Monetary Fund (IMF) approved the allocation of a regular tranche credit to Armenia under the “Poverty Reduction and Growth Facility” (PRGF) at the sum of $ 4.9mln.

Mediamax reports that the IMF Deputy Managing Director Takatoshi Kato noted that “the prudent fiscal and monetary policies, large external inflows, and ongoing structural reforms have contributed to double-digit growth of GDP in a low inflation environment and to a sustained reduction in poverty and unemployment”.

Takatoshi Kato stated about the “impressive progress in the areas of fiscal and financial sector reforms”, including the improved tax administration and improved corporate governance of commercial banks.

The Deputy Managing Director of IMF stated that the authorities’ economic program for the remainder of 2006 and 2007 focuses on limiting inflationary pressures, maintaining a flexible exchange rate arrangement, and improving tax revenue performance. Takatoshi Kato said that the draft 2007 budget envisages a significant increase in tax revenues, which will be needed to finance priority expenditures in infrastructure and social services.

The “Poverty Reduction and Growth Facility” programme was approved in May 2005. It is provided for three years and envisages allocation of about $34.3mln to Armenia.