IMF Executive Board completes 3rd review under SBA for Armenia and approves US$36.9 mln disbursement
The Executive Board of the International Monetary Fund (IMF) completed the third review of the Republic of Armenia’s performance under the program supported by the Stand-By Arrangement (SBA). The completion of the review will allow the authorities to draw SDR 25.714 million (about US$37 million), bringing total disbursements to SDR 231.7 million (about US$ 332 million), the IMF said in a statement.
“Monetary policy has rightly been accommodating, supporting the economy and keeping the banking sector liquid. Inflation remains low, with the exchange rate relatively stable over much of this year. Nevertheless, the Central Bank of Armenia should carefully monitor market developments and stand ready to adjust its monetary policy stance, as necessary, to preserve macroeconomic stability, while maintaining exchange rate flexibility to absorb shocks under its inflation targeting framework. While the financial system has not shown signs of stress, supervisors should continue to identify vulnerabilities and risk factors in the banking system and stand ready to take relevant regulatory actions.
Financial sector reforms, some of which are underway, will support the recovery and long-term growth.
The Fund’s financial support will help Armenia meet these challenges, including the urgent social and economic implications of COVID-19 pandemic. Beyond the current crises, the economic outlook is generally positive, contingent upon the anticipated global recovery and domestic reform implementation”, the statement says.