Civilnet
By Zhanna Avagyan
The International Monetary Fund has approved a new $175 million credit line for Armenia.
In a release on Thursday, the Washington-based international financial institution announced a 36-month stand-by arrangement for Armenia, to replace an earlier deal reached in 2022.
Under the terms of the agreement, Armenia will gain immediate access to $25 million, with the remaining funds to be made available in installments after regular six-month assessments.
The money could be used in case Armenia faces any difficulties repaying its mounting debts. However, Armenia says it will treat the arrangement as precautionary, meaning the country has no immediate plans to make any withdrawals.
In its announcement, the IMF noted Armenia’s strong economic growth over the past three years and the country’s positive economic outlook in the short term. Armenia’s gross domestic product is expected to grow by another 5.5% next year.
In its decision, the IMF cited the government’s “agile” and “prudent” management of the country’s economy, but cautioned that Armenia should still seek more participation in the workforce and more diverse trade.
Armenia’s public debt has grown significantly in recent years, due in part to increased government spending. Debt is now approaching $13 billion and is already more than 50% of total gross domestic product. Armenia’s debt repayment schedule runs until the mid-2050s.
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