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The Executive Board of the International Monetary Fund (IMF) approved  Armenia’s request of emergency funding of 205.94 million (about US $280 million). The funding is part of the program supported by the Stand-By Arrangement (SBA) that was approved by the IMF’s Board in 2019, the Fund reported in a press statement.

It is noted that the impact of the COVID-19 pandemic and the tightening of global financial conditions have disrupted Armenia’s above-trend growth and favorable economic conditions. The near-term outlook has significantly weakened, with fiscal and current account deficits widening considerably this year. The Fund’s financial support will help Armenia meet these challenges, including the urgent social and economic implications of COVID-19 pandemic.

Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing Director and Chair, made the following statement:

“Following a strong performance in 2019, the Armenian economy was hit hard by the COVID-19 pandemic. The government has proactively responded to the crisis, adopting widespread containment measures while supporting vulnerable individuals and firms in the most affected sectors.

Implementation of the authorities’ reform agenda will bolster sustainable and inclusive growth. This includes efforts to establish a holistic anti-corruption framework, improve the business climate and support small and medium-sized enterprises, and strengthen the health and education sectors, the source said.