ArmInfo. On December 20, the Executive Board of the International Monetary Fund (IMF) completed the first debriefing of the Stand-by loan agreement with Armenia.
According to the official statement of the Central Bank of Armenia, the Armenian authorities will continue the loan agreement until May 16, 2021, if there are no problems with the balance of payments as a result of unforeseen economic shocks. The report recalls that the IMF Executive Council on May 17 this year approved the provision of 180 million SDR to 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.
Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair of the IMF Executive Board, noted that Armenia's economic performance is strong with healthy growth, low inflation, a stable financial system and improved external and tax buffers. In addition, he indicated that the public debt remained in a downtrend, and Armenia is expected to reach the medium-term target several years earlier than expected. "This stimulating factor will allow us to direct more efforts towards reforms in support of more balanced and inclusive growth, reduction of poverty and unemployment," Furusawa said.
At the same time, he noted that, despite the overfulfillment of the budget, maintaining the momentum of reforms is important from the point of view of strengthening revenue, including for completing reforms related to property taxation. In this context, acting IMF Executive Board Chair noted that overfulfillment of the budget recorded incomes above the expected level in Armenia and capital expenditures below the expected.
According to him, the implementation of the reform agenda of the authorities, including efforts to improve governance through the creation of a comprehensive anti-corruption system, will strengthen stable and inclusive economic growth. Monetary policy aimed at ensuring price stability, as Furusawa emphasized, also contributes to economic growth.
<The implementation of the Basel 3 measures by the authorities will increase the stability of the financial system, while programs aimed at developing the capital market and increasing financial accessibility are also welcomed. In addition, the authorities reaffirmed their commitment to protecting the most vulnerable sectors of the population by expanding the social security network and increasing its targeting. Steps aimed at strengthening human capital and increasing women's participation in the labor market are key points on the long-term structural agenda of the authorities>, he said.
It should be noted that according to the IMF forecast, the GDP growth of Armenia in 2019 will amount to 4.6%. Meanwhile, the recently updated WB forecast for Armenia's GDP growth in 2019 improved to 6.9% from the previous 5.5%. And according to actual statistical data, in January-November 2019, acceleration in the-o-y growth of economic activity in Armenia from 5.7% to 7.5% is already recorded.