The executive board of the International Monetary Fund (IMF) has approved a stand-by arrangement (SBA) of 248.2 million US dollars for Armenia to improve its business climate and support the structural reforms of the government.
According to the IMF, Armenia’s government will treat the 36 month long SBA as a precautionary agreement and use it only in case of “shocks generated by balance of payments needs”. Up to 35.5 million US dollars will be made available immediately while the remaining amount will be subject to IMF reviews.
“The three-year stand-by arrangement will support the authorities’ objective of moving towards a more dynamic, sustainable, and inclusive economy. The precautionary nature of the arrangement will provide insurance against external shocks,” said IMF deputy managing director Mitsuhiro Furusawa.
The executive board noted that Armenia has continued to make progress in maintaining macroeconomic and financial stability, however further measures are still needed, including the modernisation of the country’s tax administration and property taxation.
The IMF forecasts Armenia’a GDP growth at 4.6 per cent in 2019 and a stable, 4.5 growth rate between 2020 and 2023.