IMF planning to provide Armenia with new stand-by arrangement of  nearly $175 million

ArmInfo.The IMF team and the Armenian authorities have reached a staff-level agreement on policies for the completion of the sixth review under the three-year  SBA as well as for a new 36-month, SDR 128.8 million (about US$175  million) SBA, which will continue to support Armenia's economic  reform program.

The agreement is subject to approval by the IMF's  Executive Board later this year, according to an IMF statement.

The new SBA, which the Armenian authorities intend to treat as  precautionary, aims to support continuity in the government's policy  and reform agenda to maintain macroeconomic stability and foster  sustainable and inclusive growth. Policy priorities include enhancing  economic resilience, advancing a gradual fiscal consolidation by  mobilizing tax revenues and prioritizing spending to maintain a  moderate debt level, strengthening institutional frameworks, and  continuing structural reforms to boost labor productivity, enhance  trade diversification, and improve the overall business environment.

An International Monetary Fund (IMF) team led by Alexander Tieman  visited Yerevan from September 17- 30, 2025, to conduct discussions  for the Sixth review under the current Stand-By Arrangement (SBA)  with Armenia and the authorities' request of a new 36-month SBA. At  the conclusion of the discussions, Mr.  Tieman issued the following  statement:

"The IMF team and the Armenian authorities have reached a staff-level  agreement on policies for the completion of the sixth review under  the three-year SBA as well as for a new 36-month, SDR 128.8 million  (about US$175 million) SBA, which will continue to support Armenia's  economic reform program. The agreement is subject to approval by the  IMF's Executive Board later this year.  

"Armenia's economic activity remains robust, with real GDP growth of  5.6 percent in the first half of the year, driven by buoyant  consumption and investment as well as strong tourism arrivals.  Employment growth has remained steady, and inflation has temporarily  picked up to 3.7 percent y/y in September, driven largely by food and  services prices. The current account deficit has remained stable,  reflecting strong domestic demand and normalization of goods trade,  offset by strong tourism. Prudent execution of the 2025 budget has  resulted in a small overall fiscal deficit of 0.4 percent of GDP  through June 2025, which was lower than projected on the back of  robust tax revenue performance, buoyed by strong economic activity,  alongside under-execution in both current and capital expenditures.  Central government debt remains moderate at 48 percent of GDP at end  2024. The banking system is highly profitable and features strong  capital and liquidity buffers.

"Real GDP growth is expected to remain strong reaching about 5 and  5.5 percent in 2025 and 2026, respectively. Inflation is expected to  remain around the Central Bank of Armenia's (CBA) target by end-  2025. Risks to this outlook stem mainly from the uncertainty related  to the ongoing global trade tensions and potential slowdown in the  growth of trading partners, and regional geopolitical risks. On the  upside, growth could exceed expectations if net exports perform  better than anticipated and if transport links underpinning the peace  declaration are implemented more swiftly.  "The draft 2026 budget  targeting a deficit of 4.5 percent of GDP, aims to preserve  macro-fiscal stability while supporting Armenia's priority spending  needs, including on social protection, security, health, education,  and infrastructure. Over the medium term, careful expenditure  prioritization alongside tax policy efforts and strengthened revenue  administration will continue to support a gradual fiscal  consolidation to maintain debt at a moderate level. Reforms to  strengthen medium-term fiscal planning, enhance public financial  management-including through robust fiscal risk management and  transparency-and bolster the public investment management framework  remain critical to support fiscal efforts.

"Amid contained inflationary pressures and anchored inflation  expectations, the current monetary policy stance is appropriate. In  view of the significant uncertainty, the Central Bank of Armenia  (CBA) should continue to monitor closely economic developments and  inflation expectations and stand ready to adjust its policy rate as  needed. The flexible exchange rate remains a key shock absorber, and  the authorities' commitment to maintaining adequate international  reserve buffers is welcome. The CBA continues to vigilantly monitor  financial sector risks and to upgrade its supervisory toolkit and  capacity, including related to crypto assets.  "The government's  structural reform agenda appropriately focuses on strengthening  economic resilience and fostering inclusive growth, including by  boosting labor force participation among vulnerable populations,  encouraging diversification in the country's export basket and  markets, and improving the business environment. Achieving these  objectives requires timely and effective implementation of the  authorities' employment and export strategies, prioritizing  governance reforms, and upgrading the insolvency framework to support  quality investments.

Recall, in June 2025, following the fifth review of the SBA, the  Executive Board of the International Monetary Fund approved Armenia's  access  to a standby facility of nearly $26.1 million (SDR 18.4  million), bringing the total amount of access to approximately $156.9  million (SDR 110.4 million) since the inception of the Stand-By  Arrangement (SBA). Prior to this, in mid-December 2024, the IMF  Executive Board, following the 4th SBA review, approved a standby  facility for Armenia in the amount of SDR 18.4 million (approximately  $24.12 million), bringing the total available funds to SDR 92 million  (approximately $120.59 million). The International Monetary Fund  approved this three-year precautionary Stand-By Arrangement (SBA) for  Armenia in the amount of SDR 128.8 million on December 13, 2022,  immediately opening access to SDR 18.4 million, with the remaining  amount to be disbursed following final reviews of six semi-annual  periods.