Armenia’s economic growth is robust, although not diversified, according to the sixth and final country review under EFF/ECF credit program by the IMF Executive Board, Armenian News-NEWS.am reports. Generally, economic policies of Armenia have delivered on the objectives of the Fund’s program.

The completion of the review allows the authorities to draw an additional SDR 55 million (about $84 million), bringing the whole disbursements to the planned SDR 266.8 million ($407.2 million), approved in June 2010.

In line with the adopted policies, Armenia reached 4.7% growth in 2011, 7.2% in 2012, and stays strong in 2013. Inflation has remained below the Central Bank’s 4 percent target. Fiscal deficit has been reduced over the past three years, which has included substantial tax revenue increases.

The Central Bank of Armenia has permitted greater flexibility of the national currency, Armenian dram, over the past year, rebuilt reserves following sizeable intervention in May-June 2012, and strengthened the monetary framework and operations. The CBA has also moved decisively to implement Financial Sector Assessment Program and IMF technical assistance recommendations. Banking sector indicators remain sound.

At the same time, significant challenges and vulnerabilities remain. Robust growth has resumed, but has reflected in part rapid growth of credit and consumption, favorable weather, and high metals prices. More progress is needed to continue the external adjustment, reduce poverty, and enhance the business climate. Implementation of the authorities’ stated policy plans should help, the IMF experts stated.