Yerevan /Mediamax/. Fitch Ratings Agency stated that the proposed IMF loan facility for USD540m would support the adjustment of Armenia’s economy in the face of a global and regional economic shock, and support the outlook for its sovereign ratings.

Armenia’s foreign and local currency Issuer Default Ratings (IDRs) are ‘BB’ with Stable Outlooks. The Country Ceiling is ‘BB+’ and the country’s Short-term rating is ‘B’.

“Armenia’s decision to seek a precautionary IMF programme and allow a freer float for the currency is a welcome signal of the authorities’ cautious approach to managing current difficulties,” says Andrew Colquhoun, Director in Fitch’s Sovereigns Group.

“However, the reserves loss to end-January indicates the scale of the shock, and suggests there is little room for policy missteps which could undermine macroeconomic stability and increase downwards pressure on the ratings,” Fitch representative noted.