As a result of the IMF mission to Armenia held from September 18 to October 1, 2024, and subsequent discussions, a staff-level agreement has been reached on the fourth review of the three-year Stand-By Arrangement supported by the IMF. The review confirms the effective and timely implementation of commitments under the program, as well as the stability and reliability of the ongoing macroeconomic policy. IMF experts anticipate that Armenia's economic growth rate will remain stable this year, with a projected growth of 6% in 2024, driven by strong domestic demand.
"The government’s structural reform agenda is appropriately focused on fostering inclusive growth by promoting labor market participation among youth, women, and vulnerable groups, expanding diversification in the country’s export basket and markets, and improving the business environment. Achieving these goals requires clear and comprehensive strategies for employment and exports, prioritizing governance reforms, modernizing the insolvency framework, and rationalizing investment incentives to support quality investments," noted Iva Petrova, Head of the IMF mission to Armenia.
The review is subject to approval by the IMF Executive Board in December of this year, after which $24.5 million (SDR 18.4 million) will become available as part of the program, increasing the total amount available under the arrangement to $122.7 million (SDR 92 million). The program is precautionary in nature, with the borrowed funds aimed at meeting the external (balance of payments) financing needs arising from potential future economic shocks.
