Yerevan /Mediamax/. The Executive Board of the International Monetary Fund (IMF) today completed the sixth and final review## of Armenia’s economic performance under the Poverty Reduction and Growth Facility (PRGF) arrangement and approved the release of the tranche at the sum of $5.4mln.

Mediamax reports that the total sum of the program will make $37,3mln.

Following the Executive Board’s discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, said: “Armenia’s adherence to prudent macroeconomic policies and the progress made in structural reforms have contributed significantly to its strong performance under its third PRGF arrangement. A marked reduction in poverty has been achieved in a high-growth and low inflation macroeconomic environment. Strong remittance and foreign direct investment inflows have dampened the impact of rapidly rising imports on the balance of payments. The medium-term outlook remains positive in view of favorable investment prospects”.

According to Portugal, the continued sound fiscal and monetary policies remain key to maintaining macroeconomic stability and external competitiveness, against the background of large-scale foreign exchange inflows and upside inflationary risks.

“The existing monetary policy framework, based on a flexible exchange rate, remains the best option for Armenia. The authorities’ timely monetary policy actions over the past year have demonstrated the authorities’ commitment to price stability and helped contain inflationary expectations despite strong headwinds from higher world food and energy prices”, Murilo Portugal stated, noting at that the fact that IMF welcomes Armenia’s interest in continuing its close cooperation with the Fund after the current PRGF arrangement expires in May 2008”.