The IMF has allocated Armenia third tranche of $16 million under the EFF program

Moscow. November 12. The Executive Board of the International monetary Fund approved a new tranche under the three-year extended Fund facility (Extended Fund Facility, EFF).

“The Board of the IMF on the results of the second review of Armenia’s fulfillment of the program decided to allocate the state 11,74 million SDR (about us $16.3 million), then the total amount of payments the country will be 35,22 million SDR (about us $48,9 million)”, – stated in the message the press service of the Fund.

The IMF believes that the policy of Armenian authorities contributed to the maintenance of stability and economic growth. “Indicators of Armenia within the program on the background of more negative than-expected external conditions has led to the rejection of some conditions EFF. The response of the authorities helped to mitigate the initial effect of the challenges, but the Outlook remains challenging. Requires strong and consistent implementation of agreed measures to achieve the objectives of the program, the recovery of the political space, unlocking the growth potential of Armenia”, – stated in the message.

“It is important to return to greater exchange rate flexibility and reducing government intervention. Gradual normalization of monetary relations will facilitate the resumption of Bank lending. Strengthening ties with the public, the business community and other stakeholders on key policy areas will be important to achieve political consensus in the country. Financial recovery in the energy sector, structural reforms to enhance competitiveness and global integration remain crucial to reduce vulnerability and sustain economic growth,” – says the IMF.

Three-year credit program of the IMF anti-crisis support to Armenia in the total amount of 82,21 million SDR (approximately us $115 million) was approved on 7 March 2014, was approved the first tranche of SDR 11,74 million. Funds are allocated in seven equal tranches, the program execution is monitored every six months. The IMF in December 2014 completed the first review and decided to provide the Republic of the second tranche.