On December 12, 2022, the Executive Board of the International Monetary Fund (IMF) approved the new three-year program for Armenia: 128.8 million special borrowing rights with a volume of about 171.1 million USD. The initial program will be preventive, and the borrowed funds will be directed to meet the RA economy's external (balance of payments) financing needs caused by possible future shocks.

The new program will support the RA government's economic plan to achieve investment-, knowledge- and export-led growth while maintaining macroeconomic, fiscal, and financial stability and reducing poverty. In particular, the new program envisages reforms aimed at fiscal policy, including tax policy, tax administration, cost efficiency, public investment management, and financial risk management, as well as improving monetary policies, financial sector, infrastructure, business environment, and labor market policies.

During the meeting of the Council, IMF Deputy Managing Director Bo Li emphasized that Armenia's economy has maintained a high rate of growth, which was supported by high increases in consumption and income, capital, and labor inflows. Despite the predicted stable growth, there are considerable uncertainties in the context of the Russian-Ukrainian conflict and the global situation. The new program will support the RA government in maintaining economic and financial stability and ensuring sustainable and inclusive growth.

After the Council's approval, one-seventh of the total funding became available for Armenia - 18.4 million special borrowing rights for 24.4 million USD. The remaining funds will become equally available in the following six semi-annual reviews.

Details of the program can be found here.