## IMF Executive Board Concludes Second Review Under Armenia’s Stand-By Arrangement and Augments Access to Address the Impact of COVID-19 _IMF News, May 18, 2020_ ## Source details **Canonical URL:** [IMF Executive Board Concludes Second Review Under Armenia’s Stand-By Arrangement and Augments Access to Address the Impact of COVID-19](https://www.imf.org/en/news/articles/2020/05/18/pr20219-armenia-imf-execboard-concludes-2ndrev-under-sba-augments-access-address-impact-covid19) ## Other formats - [Markdown version](/en/news/articles/2020/05/18/pr20219-armenia-imf-execboard-concludes-2ndrev-under-sba-augments-access-address-impact-covid19/index.md) - [Structured JSON version](/en/news/articles/2020/05/18/pr20219-armenia-imf-execboard-concludes-2ndrev-under-sba-augments-access-address-impact-covid19/index.json) - [Bundle manifest](/en/news/articles/2020/05/18/pr20219-armenia-imf-execboard-concludes-2ndrev-under-sba-augments-access-address-impact-covid19/bundle-manifest.json) ## Bibliographic details - Authors: Arrangement, Augments Access - Published: May 18, 2020 --- ### IMF decision and access augmentation - The Executive Board completed the second review of the Republic of Armenia’s performance under the program supported by the Stand-By Arrangement (SBA). - Armenia’s three-year SBA is SDR 180 million (about US$248 million), equivalent to 139.75 percent of Armenia’s quota in the IMF; it was approved on May 17, 2019. - The authorities’ request to augment access under Armenia’s SBA was approved by 100 percent of quota (SDR 128.80 million or about US$175 million), bringing overall access under the SBA to SDR 308.8 million (around 240 percent of Armenia’s quota). - The augmentation and completion of the review will make SDR 205.94 million (about US$280 million) immediately available. - The augmentation is intended to help contain short-term risks and provide resources to meet the urgent human and economic implications of the COVID-19 pandemic. ### Rationale: economic impact of COVID-19 and role of Fund support - The COVID-19 pandemic and tightening global financial conditions have disrupted Armenia’s above-trend growth and favorable economic conditions. - The near-term outlook has significantly weakened, with fiscal and current account deficits widening considerably in 2020. - The Fund’s financial support aims to help Armenia meet these challenges, including urgent social and economic implications of the pandemic. ### Assessment of policy response and recommendations (Mr. Tao Zhang, Deputy Managing Director and Chair) - Observations on 2019–2020 performance and policy response: - Following a strong performance in 2019, the Armenian economy was hit hard by the COVID-19 pandemic. - The government adopted widespread containment measures while supporting vulnerable individuals and firms in the most affected sectors. - Fiscal policy: - The fiscal deficit is projected to widen considerably in 2020, reflecting the impact on revenues and higher current spending for healthcare and economic support to vulnerable households and firms. - The authorities are committed to pursuing their medium-term goal of debt sustainability once the crisis abates, and public debt is expected to decline over the medium-term in line with Armenia’s fiscal rule, while maintaining space for investment and social spending. - Monetary and financial policy: - The Central Bank of Armenia balanced mandates for price and financial stability: it lowered its policy rate, ensured ample market liquidity, and intervened to limit excessive exchange rate volatility. - Structural reforms and growth: - Implementation of the authorities’ reform agenda will bolster sustainable and inclusive growth, including: - Establishing a holistic anti-corruption framework. - Improving the business climate and supporting small and medium-sized enterprises. - Strengthening the health and education sectors. - Role of the SBA augmentation: - The augmentation of access under the Stand-By Arrangement will provide much needed support, allowing the authorities to mitigate the pandemic and support affected households and businesses. ### Key economic projections and selected indicators (Armenia: Selected Economic and Financial Indicators, 2017–25) - National income and prices - Real GDP (percent change): 2017: 7.5; 2018: 5.2; 2019: 7.6; 2020: -1.5; 2021: 4.8; 2022: 4.5 - Final consumption expenditure, Contrib. to Growth: 2017: 7.4; 2018: 4.1; 2019: 8.8; 2020: 1.2; 2021: 1.5; 2022: 1.8; 2023: 1.9 - Gross fixed capital formation, Contrib. to Growth: 2017: 0.7; 2018: 0.8; 2019: 0.0; 2020: 2.3; 2021: 2.4; 2022: 2.5; 2023: 2.6 - Changes in inventories, Contrib. to Growth: 2017: 1.1; 2018: 3.8; 2019: -1.7; 2020: -2.5 - Net exports of goods and services, Contrib. to Growth: 2017: -1.2; 2018: -2.7; 2019: 0.1; 2020: -0.2; 2021: 1.0; 2022: 0.3 - Gross domestic product (in billions of drams): 2017: 5,564; 2018: 6.017; 2019: 6.569; 2020: 6,519; 2021: 6,990; 2022: 7,543; 2023: 8,181; 2024: 8,909; 2025: 9,721 - Gross domestic product (in millions of USD): 2017: 11,527; 2018: 12.457; 2019: 13.672; 2020: 12,977; 2021: 13,422; 2022: 14,536; 2023: 15,597; 2024: 16,768; 2025: 18,041 - Gross domestic product per capita (in USD): 2017: 3,869; 2018: 4.196; 2019: 4.615; 2020: 4,370; 2021: 4,520; 2022: 4,894; 2023: 5,251; 2024: 5,645; 2025: 6,073 - CPI (period average; percent change): 2017: 1.4; 2018: 0.9; 2019: 2.0; 2020: 3.0; 2021: 3.5; 2022: 3.9 - CPI (end of period; percent change): 2017: 4.0 - GDP deflator (percent change): 2017: 2.1; 2018: 2.8; 2019: 3.3; 2020: 4.2; 2021: 4.4 - Unemployment rate (in percent): 2017: 20.9; 2018: 20.5; 2019: 18.9; 2020: 19.0; 2021: 17.9; 2022: 17.6; 2023: 17.5; 2024: 17.4; 2025: 17.3 - Investment and saving (in percent of GDP) - Investment: 2017: 19.3; 2018: 22.4; 2019: 21.4; 2020: 21.9; 2021: 23.0; 2022: 23.5; 2023: 24.1 - National savings: 2017: 16.3; 2018: 13.0; 2019: 11.0; 2020: 12.8; 2021: 14.7; 2022: 15.7; 2023: 16.6; 2024: 18.1 - Money and credit (end of period) (percent change) - Reserve money: 2017: -1.0; 2018: 17.8; 2019: 5.4; 2020: 13.2; 2021: 11.1; 2022: 10.8; 2023: 8.0; 2024: 8.2 - Broad money: 2017: 18.5; 2018: 11.2 - Private sector credit growth: 2017: 16.5; 2018: 17.2; 2019: 7.0; 2020: 9.0; 2021: 8.5 - Central government operations (in percent of GDP; unless otherwise indicated) - Revenue and grants: 2017: 21.2; 2018: 22.3; 2019: 23.9; 2020: 23.3; 2021: 23.7; 2022: 24.9; 2023: 25.3; 2024: 25.4 - Of which : tax revenue: 2017: 20.2; 2018: 21.0; 2019: 21.7; 2020: 22.0; 2021: 22.9; 2022: 23.1; 2023: 23.2 - Expenditure: 2017: 26.0; 2018: 28.3; 2019: 26.5; 2020: 26.9 - Overall balance on a cash basis: 2017: -4.8; 2018: -1.8; 2019: -5.0; 2020: -2.9; 2021: -2.0 - Public and publicly guaranteed (PPG) debt - PPG debt (percent of GDP): 2017: 58.9; 2018: 55.8; 2019: 53.6; 2020: 64.1; 2021: 62.1; 2022: 59.8; 2023: 57.0; 2024: 54.8; 2025: 52.8 - Central Government's PPG debt (in percent): 2017: 53.7; 2018: 51.3; 2019: 50.0; 2020: 60.9; 2021: 59.1; 2022: 57.3; 2023: 55.0; 2024: 53.3; 2025: 51.8 - Share of foreign currency debt (in percent): 2017: 81.1; 2018: 80.0; 2019: 79.0; 2020: 75.7; 2021: 73.5; 2022: 74.1; 2023: 75.1; 2024: 74.3; 2025: 73.7 - External sector (in millions of USD; unless otherwise indicated) - Exports of goods and services: 2017: 4,312; 2018: 4,700; 2019: 5,274; 2020: 4,091; 2021: 4,817; 2022: 5,344; 2023: 5,765; 2024: 6,150; 2025: 6,557 - Imports of goods and services: 2017: -5,723; 2018: -6,647; 2019: -7,246; 2020: -5,946; 2021: -6,606; 2022: -7,289; 2023: -7,815; 2024: -8,307; 2025: -8,830 - Exports of goods and services (percent change): 2017: 12.2; 2018: -22.4; 2019: 17.7; 2020: 10.9; 2021: 7.9; 2022: 6.7; 2023: 6.6 - Imports of goods and services (percent change): 2017: 26.7; 2018: 16.1; 2019: -17.9; 2020: 10.3; 2021: 7.2; 2022: 6.3 - Current account balance (in percent of GDP): 2017: -3.0; 2018: -9.4; 2019: -8.2; 2020: -8.6; 2021: -7.2; 2022: -6.7; 2023: -6.4; 2024: -6.1; 2025: -6.0 - FDI (net): 2017: 222; 2018: 247; 2019: 397; 2020: 161; 2021: 292; 2022: 385; 2023: 404; 2024: 439; 2025: 461 - Gross international reserves: 2017: 2,314; 2018: 2,259; 2019: 2,850; 2020: 2,190; 2021: 2,245; 2022: 2,446; 2023: 2,578; 2024: 2,587; 2025: 2,598 - Import cover 1/: 2017: 3.7; 2018: 5.7 - End-of-period exchange rate (dram per USD): 2017: 484; 2018: 480 - Average exchange rate (dram per USD): 2017: 483 *Press Release No. 20/219 – IMF Communications Department, May 18, 2020.* --- ## Content in this bundle - **Pr20219 Armenia** - [Pr20219 Armenia (Markdown version)](/-/media/files/news/press-release/2020/pr20219-armenia.pdf.md){rel="alternate" type="text/markdown"} - [Pr20219 Armenia (PDF)](/-/media/files/news/press-release/2020/pr20219-armenia.pdf){rel="external" type="application/pdf"} --- ## References - [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg) - [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx) - [IMF Quotas -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2022/imf-quotas) - [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2020/05/18/pr20219-armenia-imf-execboard-concludes-2ndrev-under-sba-augments-access-address-impact-covid19_