MINISTRY OF FINANCE
OF THE REPUBLIC OF ARMENIA

The Republic of Armenia joined the International Monetary Fund on April 28, 1992, according to the RA Law “On Armenia’s membership to the International Monetary Fund, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Development Association, the European Bank for Reconstruction and Development, the Multilateral Investment Guarantee Agency and the International Centre for Settlement of Investment Disputes” from April 28, 1992.

Armenia's quota in the IMF is SDR 92.0 million (Special Drawing Rights).

On the loans provided to the RA Government by the International Monetary Fund

The IMF provides loans both to the RA Government and to the Central Bank of Armenia. To mitigate the impact of the global economic crisis, in 2009 the IMF approved the Stand-By Agreement three-year program for Armenia, according to which the Republic of Armenia should have been provided a loan in the amount of SDR 533.6 million (USD 830 million) in 2009-2011. This sum of money should have been distributed between the RA Government and the Central Bank and should have been provided on the basis of commitment performance of Armenia in the framework of the program. In order to regulate the relations concerning the loan provided by the IMF, an agreement “On providing a Loan in the Amount of SDR 202.4 million” was signed between the RA Government and the IMF in the form of letters exchange.   

In general, within the framework of the 2009-2010 program, it was provided SDR 350.4 million, including:

Taking into account the non-favourable conditions of crediting in terms of public debt management, in particular - short terms of maturity and grace period, at the request of the Armenian side (RA Prime Minister’s “Letter of Intent” from 10.06.2010 addressed to the IMF), in 2010 the IMF Executive Board approved two new three-year programs (Extended Credit Facility (ECF) and Extended Fund Facility (EFF), each of them in the amount of SDR 133.4 million) for Armenia and invalidated the previous Stand-By Arrangement program.

Taking into amount the fact that in the framework of the invalidated program the RA Government should have received SDR 74.8 million loan, the IMF agreed on crediting the RA Government with the same amount in the framework of the new Extended Credit Facility (EDF) program, terms and conditions of which were more favourable for the RA Government. This fact was fixed with the amendments dated in 2010 to the agreement “On providing 202.4 SDR million Loan” between the RA Government and the IMF. The above-mentioned SDR 74.8 million was allocated to the RA Government in 2010-2011 with equal shares.

Afterwards, evaluating the financing needs of the RA state budget deficit of 2012, the RA Government requested the IMF to provide more SDR 27 million to the RA Government in the ECF program framework as a budget support loan (RA Prime Minister’s “Letter of Intent” from 22.11.2011 addressed to the IMF), as a result, the sum of money defined by the agreement “On Providing 202.4 SDR million Loan” between the RA Government and the IMF was added to SDR 27 million and totaled SDR 229.4 million. The above-mentioned SDR 27 million was allocated to the RA Government in 2012.

Within the framework of the above-mentioned programs, crediting terms are as follows:

¹ interest rate: SDR interest rate plus variable margin. The SDR interest rate is set on a weekly basis and the margin is defined by the IMF for each financial year.

²premium calculation is linked to the RA quota in the IMF (currently SDR 92.0 million). In case of exceeding 300 percent of the quota, premium is paid at the rate of 2percent (for the exceeding part), in case of exceeding 300 percent of the quota in three years - additional 1 percent annually.

³commitment fee: 0.15 percent rate if the amount does not exceed 200 percent of the quota; 0.30 percent – from 200 to 1000 percent of the quota; and 0.6 percent – in case of amounts exceeding 1000 percent of the quota. The annual commitment fee is calculated on the amounts allocated for each 12-month period.

As of February 28, 2017, the debt in terms of the loans provided to the RA Government by the IMF amounted to USD 122,635,356.2:

At the same time, on September 27, 2016, a meeting of the representatives from the RA interested agencies and the IMF was held at the RA Ministry of Finance concerning the project discussions of the Fourth Verification Letter of Intent of “The Republic of Armenia - Extended Credit Facility Project”. The Letter of Intent was signed on November 15, 2016, within the framework of which the Republic of Armenia is provided with the equivalent amount to SDR 15.65 million.