YEREVAN, December 4. /ARКА/. The Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation,1 completed the sixth review under the Stand-By Arrangement (SBA), and subsequently cancelled the SBA and approved a new 36-month SBA with Armenia amounting to SDR 128.8 million (100 percent of Armenia’s quota in the IMF or about US$ 175 million).
The cancellation of the SBA, which would have expired on December 11, 2025, allows the approval of the new SBA, which will support the authorities’ efforts to maintain macroeconomic stability and advance their structural reform agenda, and provide insurance in an uncertain environment. The authorities have consented to the publication of the Staff Report prepared for this consultation.
Upon the Board’s approval of the new SBA, an amount equivalent to SDR 18.4 million (about US$25 million) becomes immediately available to Armenia. The remaining amount will be made available in equal tranches, subject to six semi-annual reviews. The Armenian authorities have indicated that they intend to treat the arrangement as precautionary.
About the previous SBA agreement
On December 12, 2022, the IMF Executive Board approved a 36-month SBA standby facility for Armenia worth SDR 128.8 million (approximately $165.6 million) to support the authorities’ efforts to maintain macroeconomic, financial, and fiscal stability and advance their domestic economic program. It expires on December 11, 2025.
Standby arrangements (SBAs) guarantee that a country will be able to automatically receive foreign exchange up to an agreed-upon limit at any time during the agreement’s term, subject to compliance with the terms of the agreement. Experience shows that the amount of funds allocated under such arrangements typically exceeds the amount actually used. Upon termination of the agreement, any unused portion of the loan is repaid to the IMF.-0-
