3 Nov 2022 17:54

IMF to allocate Armenia $165 for economic and financial stability

YEREVAN. Nov 3 (Interfax) - The International Monetary Fund plans to allocate more than $165 million to Armenia for the government's economic program.

"The IMF team and the Armenian authorities have reached a staff-level agreement on a precautionary Stand-By Arrangement for SDR 128.8 million (about $165.6 million) to support the government's economic program to preserve macroeconomic, fiscal, and financial stability, and to advance reforms to promote inclusive growth. The agreement is subject to approval by the IMF Executive Board, which is expected to consider it in December 2022," the IMF said in a press release.

At the request of the Armenian authorities, a staff team from the International Monetary Fund visited Yerevan from September 26 to October 6 to discuss a three-year economic program supported by an IMF precautionary Stand-By Arrangement.

"Armenia is on course to achieve growth of about 11% in 2022, in part driven by large inflows of external income, capital, and labor into the country. Fiscal over-performance and dram appreciation have contributed to a significant decline in public debt, which is expected to drop to 51% of GDP this year from 60.3% of GDP in 2021. Economic growth is expected to decelerate in 2023, reflecting weaker external demand and tighter global financial conditions, and to remain in the 4-5% range over the medium term," the IMF said.

The IMF earlier forecast Armenia's GDP might grow 7% in 2022 and 3.5% in 2023.

The 2022 state budget assumes 7% GDP growth. The Finance Ministry forecasts the economy will grow 7% in 2023 and the Central Bank thinks 4-5% growth possible.