Yerevan/Mediamax/. The European Commissioner for Economic and Monetary Affairs Olli Rehn has signed on behalf of the EU the Memorandum of Understanding with the Republic of Armenia setting the economic policy conditions for the provision of macro financial assistance (MFA) to Armenia in the form of a loan of up to €65 million and a grant of up to €35 million.

The assistance will support the adjustment programme agreed between Armenia and the IMF to help the country through the global crisis.

The planned assistance is part of the external financing provided to cover Armenia's balance of payment needs in 2011. The EU programme is conditional on the respect of the economic programme agreed between the Armenia and the IMF and on the implementation of a number of economic policy measures agreed by the Republic of Armenia and the European Union in the areas of: public debt management, pension system, public internal financial control, external audit, public procurement, tax policy and tax administration, and customs policy.

It supports the economic adjustment and reform programme of the Armenian authorities designed to achieve sustainable medium-term growth. The first installment, amounting to EUR 40 million, will be released after the ratification of the Memorandum of Understanding and the Loan and Grant Agreements by the Armenian Parliament. The release of the second installment is planned for autumn 2011.