YEREVAN, December 13, /ARKA/. The Armenian authorities’ fiscal policy framework is expected to keep debt on a declining path in line with Armenia’s fiscal rules. Bo Li, IMF Deputy Managing Director and Acting Chairman said after the IMF Executive Board approved on Monday a 36-month Stand-By Arrangement (SBA) for Armenia amounting to SDR 128.80 million (about US$171.1 million or about 100 percent of Armenia’s quota in the IMF).
IMF said in 2023, the fiscal stance will continue to provide targeted support to the economy while further strengthening fiscal resilience. Over the medium term, fiscal space for priority social and capital spending will be supported by revenue-enhancing tax policy measures and efforts to strengthen the revenue administration, as well as to improve government spending efficiency, the public investment management process, and fiscal risk management.
The CBA’s monetary policy is appropriate and proactively aiming to stem inflationary pressures. Efforts to foster capital market development will help enhance monetary policy effectiveness. The CBA’s commitment to exchange rate flexibility and maintaining healthy reserve buffers will continue to serve the economy well in the event of external shocks.
The financial system is in good health. Continued monitoring of financial sector risks and enhancing of macroprudential tools will help mitigate risks associated with the rapid rises in housing prices and mortgage lending. Strengthening the supervisory and resolution frameworks will further buttress financial system resilience.
Implementation of a strong package of structural reforms guided by the 2021–26 Government Program will help foster export-led, investment-driven, and knowledge-based growth. Reforms will promote access to finance, labor force participation, and trade diversification.” -0-
