YEREVAN, September 17. /ARКА/. On Wednesday, at the opening meeting with the IMF mission delegation to Armenia, led by Alexander Timan, the Governor of the Central Bank of Armenia, Martin Galstyan, discussed recent macroeconomic developments, economic prospects, and key risks.
According to the regulator’s press service, monetary and foreign exchange policies, as well as developments in the area of international reserves and the financial sector, were also discussed.
The parties also touched on the implementation of the structural benchmarks established under the IMF-supported standby program, including the enhanced bank resolution framework, the payment system, climate risk identification, risk management, and capital market development.
The meeting was attended by Deputy Governors of the Central Bank of Armenia, Armen Nurbekyan and Hovhannes Khachatryan.
About the IMF Standby Arrangement
On December 1, 2025, the IMF Executive Board approved a new 36-month Stand-By Arrangement (SBA) with Armenia in the amount of SDR 128.8 million (100% of Armenia’s IMF quota, or approximately US$175 million). This SBA will assist the country’s authorities in maintaining macroeconomic stability and advancing their structural reform program, as well as provide insurance against uncertainty.
Following the approval, an amount equivalent to SDR 18.4 million (approximately US$25 million) became immediately available to Armenia. On June 10, 2026, an amount equivalent to SDR 18.4 million (approximately US$25.1 million) was made available to Armenia, bringing total access to SDR 36.8 million (approximately US$50.2 million). The remaining amount will be disbursed in equal tranches subject to semiannual reviews. The Armenian authorities stated that they intend to view this agreement as a precautionary measure.
On Bank Restructuring
On July 3, 2026, the National Assembly of Armenia adopted the law “On Bank Restructuring” and several related laws in their second and final reading. The need for the law stems from the recommendations of the World Bank and the IMF, presented in 2018 as part of the Financial System Assessment Program (FSAP).
The law proposes introducing a bank restructuring mechanism instead of liquidation, with the exclusive authority to implement it vested in the Central Bank of Armenia. The key instruments envisaged include bank sale, a bridge bank mechanism, separation of distressed assets, and other measures aimed at stabilizing a bank without liquidation.
To finance the restructuring process, a Restructuring Fund will be established, which will be formed from one-time, periodic, and additional contributions from commercial banks. The target level of the fund is proposed to be set at no less than 0.5% of the total liabilities of the banking system, with this level to be reached within 10 years of the law’s entry into force.
