Yerevan /Mediamax/. The Executive Board of the International Monetary Fund (IMF) approved US$127.6 million Extended Fund Facility (EFF) arrangement with Armenia to support the authorities’ economic program.

The approval enables the disbursement of US$18.2 million, while the remaining amount will be phased over the duration of the program, subject to semi-annual program reviews.

The program aims to support a rebound in economic activity, further progress in poverty reduction, inflation stabilization, and a reduction in outstanding fiscal and external vulnerabilities.

Following the Executive Board discussion on Armenia, Nemat Shafik, Deputy Managing Director and Acting Chair, said:

“Armenia’s performance under the 2010–13 Extended Fund Facility and Extended Credit Facility arrangements was sound. However, growth and inflation remain volatile, the external current account deficit continues to be large, and poverty and unemployment are still high. The new 38-month extended arrangement with the Fund aims to support the authorities in addressing these challenges and to sustain Armenia’s access to international financial markets”.

“Growth-enhancing structural reforms will also play a central role in the new program, given the objective of transforming Armenia into a dynamic emerging market. In this context, smooth accession to the Eurasian Customs Union, along with continuing growth of trade and other links with the European Union, will be essential to achieve diversification of markets, products, financial flows, and investors”, she noted.