The EU and Armenia have signed a memorandum on 100 million euros of financial assistance to Armenia.

The European Commissioner for Economic and Monetary Affairs Olli Rehn has signed on behalf of the EU the Memorandum of Understanding with the Republic of Armenia setting forth the economic policy conditions for the provision of macro financial assistance (MFA) to Armenia in the form of a loan of up to €65 million and a grant of up to €35 million. The assistance will support the adjustment program agreed between Armenia and the International Monetary Fund to help the country through the global crisis.

The planned assistance is part of the external financing provided to cover Armenia's balance of payment needs in 2011. The EU program is conditional on the respect of the economic program agreed between the Armenia and the International Monetary Fund (IMF) and on the implementation of a number of economic policy measures agreed by the Republic of Armenia and the European Union in the areas of: public debt management, pension system, public internal financial control, external audit, public procurement, tax policy and tax administration, and customs policy.

It supports the economic adjustment and reform program of the Armenian authorities designed to achieve sustainable medium-term growth. The first instalment, amounting to EUR 40 million, will be released after the ratification of the Memorandum of Understanding and the Loan and Grant Agreements by the Armenian Parliament. The release of the second installment is planned for autumn 2011, the EU said on its official website.