Washington, D.C., December 3, 2025 – The International Monetary Fund (IMF) has approved a new 36-month Stand-By Arrangement (SBA) for Armenia amounting to SDR 128.8 million (Special Drawing Rights; approximately US$175 million), following the completion of the Fund’s 2025 Article IV Consultation and the sixth review under the country’s existing SBA. The earlier arrangement, which was due to expire on December 11, was cancelled to allow the new programme to begin immediately.
IMF officials said the Armenian authorities intend to treat the new SBA as precautionary, meaning the funds will be available if needed but are not planned for immediate use. Upon approval, Armenia gained access to SDR 18.4 million(around US$25 million), while the remaining funds will be disbursed in six equal tranches after semi-annual performance assessments.
“The successor SBA, which the authorities intend to treat as precautionary, will help sustain policy prudence and strengthen resilience,” said Mr. Li, IMF Deputy Managing Director and Acting Chair, following the Board discussion.
The IMF highlighted Armenia’s solid economic performance in recent years despite facing a challenging external environment. Supported by unexpected inflows of labour and capital, the economy expanded at an average of 8.9 percent annually between 2022 and 2024. Growth is projected to reach 5 percent in 2025 and 5.5 percent in 2026.
Inflation, which had previously fallen below zero, is expected to gradually return to the Central Bank of Armenia’s (CBA) 3 percent target. Foreign-exchange reserves remain at adequate levels, supported by a flexible exchange rate that “continues to serve as a key shock absorber,” the IMF said.
The Fund endorsed the Armenian government’s 2026 draft budget, describing it as appropriately focused on gradual fiscal consolidation while maintaining support for refugees, healthcare, and public investment. The IMF noted that tightening fiscal policy modestly next year will help reduce the deficit, which reached an estimated 5 percent of GDP in 2025.
Over the medium term, the Board said Armenia would need to broaden its tax base, enhance revenue administration, and pursue structural fiscal reforms aimed at improving spending efficiency, particularly in public investment. Public debt is expected to remain moderate, at around 50–52 percent of GDP.
The CBA’s adoption of a new monetary policy framework – centered on risk management and greater transparency – was welcomed by the IMF. Directors said the framework supports the central bank’s goal of stabilizing inflation at 3 percent.
They added that policy decisions should remain data-driven, with interest rate adjustments made as required to keep inflation expectations anchored.
Armenia’s banking sector continues to be well capitalised and liquid, according to the IMF. However, the Fund raised concerns about strong credit growth, especially in consumer and construction lending. Directors urged the CBA to remain vigilant and stand ready to use macroprudential tools – regulations designed to protect the financial system – to limit emerging risks.
The IMF also encouraged regulators to move forward with plans to oversee stablecoins, reflecting growing digital-finance exposure.
Source: International Monetary Fund (IMF) Staff Report and Executive Board Press Release, December 3, 2025.
