The Executive Board of the International Monetary Fund (IMF) approved about US$171.1 million 36-Month Stand-By Arrangement for Armenia to help maintain macroeconomic stability, provide insurance against downside risks, and support the structural reform agenda, a press release said.

“The Armenian economy has maintained a strong growth momentum, supported by robust consumption and a surge in inflows of income, capital, and labor. While growth is projected to be robust, inflation and the current account deficit have also increased. The outlook is subject to significant uncertainty due to spillovers from Russia's war in Ukraine, global financial tightening, and a slowdown in major trading partners. Against this background, the authorities' program supported by a Stand-by Arrangement, which the authorities intend to treat as precautionary, seeks to maintain economic and financial stability and advance structural reforms,” IMF added.

The Armenian authorities have indicated that they will treat the arrangement as precautionary. The new Stand-By Arrangement will serve as insurance if shocks generate a balance of payments needs.

The arrangement is based on Armenia’s economic program that aims to achieve investment-driven, knowledge-based, and export-led growth while preserving macroeconomic, fiscal, and financial stability and reducing poverty.

An amount of about $24.4 million will become immediately available to Armenia. The remaining amount will be available later, subject to six semi-annual reviews.

A three-year economic program supported by an IMF Stand-By Arrangement was discussed during the visit of the staff team from the International Monetary Fund, who visited Yerevan from September 26 to October 6 at the request of the Armenian authorities.