YEREVAN, DECEMBER 13, ARMENPRESS. The Executive Board of the International Monetary Fund (IMF) today approved a 36-month Stand-By Arrangement (SBA) for Armenia amounting to SDR 128.80 million (about US$171.1 million or about 100 percent of Armenia’s quota in the IMF), the IMF said.

Upon the Board's approval, an amount equivalent to SDR 18.40 million (about US$24.4 million) becomes immediately available to Armenia, and the remaining amount will be made available, subject to six semi-annual reviews.

The Armenian authorities have indicated that they will treat the arrangement as precautionary. The new SBA will serve as insurance in case shocks generate balance of payments needs and will support the authorities’ reform efforts.

The authorities’ fiscal policy framework is expected to keep debt on a declining path in line with Armenia’s fiscal rules. In 2023, the fiscal stance will continue to provide targeted support to the economy while further strengthening fiscal resilience. Over the medium term, fiscal space for priority social and capital spending will be supported by revenue-enhancing tax policy measures and efforts to strengthen the revenue administration, as well as to improve government spending efficiency, the public investment management process, and fiscal risk management.

Following the Executive Board discussion, Mr. Bo Li, Deputy Managing Director and Acting Chairman, said that the Armenian economy has maintained a strong growth momentum, supported by robust consumption and a surge in inflows of income, capital, and labor. He stated that the new Arrangement seeks to maintain economic and financial stability and advance structural reforms to promote sustainable and inclusive growth.