May 19, 2020 - 13:47 AMT
PanARMENIAN.Net - A recent decision by the International Monetary Fund (IMF) Executive Board allows an immediate release of $280 million for Armenia, the Fund said in a statement on Monday, May 18.
The Executive Board has completed the second review of Armenia’s performance under the program supported by the Stand-By Arrangement (SBA). Armenia’s three-year SBA of SDR 180 million (about $248 million), equivalent to 139.75% of Armenia’s quota in the IMF, was approved by the IMF’s Board on Sunday.
The Executive Board also approved the authorities’ request to augment access under Armenia’s SBA arrangement by 100% of quota (SDR 128.80 million or about $175 million), bringing overall access under the SBA arrangement to SDR 308.8 million (around 240% of Armenia’s quota). The augmentation and completion of the review will make SDR 205.94 million (about $280 million) immediately available.
The augmentation of access will help the authorities contain short-term risks and will provide resources to meet the urgent human and economic implications of Covid-19 pandemic, the Fund said.
To preserve macroeconomic stability, the authorities’ have taken a number of measures to mitigate the near-term impact of Cvid -19 and remain committed to continued economic reform aimed at lifting inclusive and resilient growth and safeguarding social spending.
To support the economy, the central bank lowered its policy rate and ensured ample market liquidity. It also intervened to limit excessive exchange rate volatility.
The augmentation of access under the Stand-by Arrangement is set provide much needed support, allowing the authorities to mitigate the pandemic and support affected households and businesses.”