ArmInfo. On December 10, Armenian Minister of Finance Atom Dzhandzhugazyan received a delegation led by the head of the Armenian mission of the International Monetary Fund (IMF) Nathan Porter.
According to the press service of the Ministry of Finance, during the meeting, the parties touched on the prospects for expanding cooperation and ways of further cooperation. They discussed the possibility of developing industry strategies, as well as priorities based on their harmonization. Atom Dzhandzhugazyan presented a number of indicators and forecasts of the RA state budget for 2020. According to the Minister, the document was compiled on the basis of the results of the state budget for the current year.
The head of the Ministry of Finance also addressed the management of fiscal risks, attracting investments by ensuring fiscal transparency and accountability, managing public debt and capital market development strategies.
Chief Financier emphasized the importance of programs jointly with the IMF and assisting the Fund in capacity development.
Recall that Armenia became a member of the International Monetary Fund (IMF) April 28, 1992. During this period, the country has repeatedly applied for financial and technical support to the IMF, and the organization provided consistent assistance to the country's economy by supporting the balance of payments, as well as macroeconomic policies agreed with the Armenian authorities.
The last programmatic assistance under the "Long-Term Financing" (EFF) was provided from 2014 to 2017. During the April 2017 visit to Armenia, the head of the IMF mission in Armenia, Hossein Samiei, stated that the agreements reached with the Armenian government as a result of the last generalization were, in fact, fulfilled. Since then, the Armenian authorities have consistently stated their desire to continue cooperation with the IMF in order to ensure the continuity of programs to reform the country's economy. In May 2019, the IMF approved the provision of Stand-by loans to Armenia in the amount of about $ 248.2 million. Stand-by credit has been provided since 1952 to IMF member countries for goals agreed upon with the fund on the basis of stand-by agreements. The bank reserves the agreed amount by the due date, and the client uses it partially or fully depending on the loan needs.
As the Central Bank press service told ArmInfo, the Armenian authorities stated that these loans will be considered as a preventive measure and will not be used until problems with the balance of payments arise due to shocks. In particular, the Executive Council of the International Monetary Fund approved the provision of 180 million SDR for Armenia for 36 months (SDR - special drawing rights) - this is about $ 248.2 million or about 139.75% of Armenia's quota in the IMF. The Council approved that 25.714 million SDRs (equivalent to almost $ 35.5 million) are provided to Armenia immediately, and the remaining amount will be provided based on six semi-annual estimates.
According to the source, credit funds will be directed to strengthening the economic foundations and policies of Armenia, as well as to carrying out structural reforms, in particular, to increase management efficiency and improve the business environment.