The International Monetary Fund announced that its staff and the Armenian authorities have reached a staff-level agreement on policies to complete the first review under Armenia’s three-year Stand-By Arrangement (SBA). Executive Board approval, scheduled for June, would make about USD 25.3 million (SDR 18.4 million) available, bringing total access since the SBA’s inception in December 2025 to about USD 50.6 million (SDR 36.8 million); the authorities intend to continue treating the arrangement as precautionary. The IMF assessed economic activity as robust, citing 7.2 percent real GDP growth in 2025, inflation at 4.3 percent year-on-year in February 2026, and a widened 2025 current account deficit of 7.2 percent of GDP. It reported a 2025 fiscal deficit of 3.7 percent of GDP and central government debt of 47.3 percent of GDP, alongside a highly profitable banking system with strong capital and liquidity buffers. Growth is expected to slow to 5.3 percent in 2026, with near-term inflation pressures linked to oil prices and higher logistics costs from trade re-routing; risks were framed around uncertainty from the war in the Middle East, including commodity-price volatility and trade disruptions, as well as potential weaker partner growth and tighter global financial conditions. On policy, the statement highlighted maintaining macro-fiscal stability while accommodating priority spending in the 2026 budget, continued gradual fiscal consolidation supported by tax and revenue administration reforms, stronger fiscal risk management and transparency, and upgrades to public investment management; it also noted that the Central Bank of Armenia should remain ready to raise policy rates as needed, with the flexible exchange rate and reserves serving as shock absorbers, and called for continued structural reforms including export diversification and upgrades to the insolvency framework. The review is expected to be considered by the IMF’s Executive Board in June.
International Monetary Fund 2026-04-17
International Monetary Fund reaches staff-level agreement with Armenia on first Stand-By Arrangement review paving way for USD 25.3 million access
IMF staff and Armenian authorities reached a staff-level agreement to complete the first review under Armenia’s three-year Stand-By Arrangement, with Executive Board approval in June to make about USD 25.3 million available, while the authorities keep it precautionary. The IMF sees Armenia’s economy as robust, with 7.2 percent real GDP growth in 2025, moderate inflation, a wider current account deficit, and a profitable, well-capitalised banking system, but slower growth in 2026 amid external risks. Policy priorities include gradual fiscal consolidation, stronger fiscal risk management and public investment, preserving monetary policy readiness and exchange rate flexibility, and advancing structural reforms such as export diversification and insolvency framework upgrades.