IMF Approves $21.6 Million Loan Disbursement to Armenia

Armenia has received the fifth portion of a $111.57 million loan from the International Monetary Fund (IMF), the fund said in a press release.

WASHINGTON (Sputnik) — The International Monetary Fund (IMF)’s executive board authorized the disbursement of a fifth and final $21.6 million loan payment to Armenia, according to the release.

"The Executive Board of the International Monetary Fund (IMF) completed today the fifth and final review of Armenia’s economic performance under a three-year arrangement under the Extended Fund Facility (EFF). The completion of the review allows the authorities to draw the equivalent of SDR 15.69 million," the release stated.

The payment is the final disbursement of a $111.57 million loan approved by the IMF on March 7, 2014, according to the release.

"Armenia's authorities remain committed to maintaining a prudent medium-term fiscal path by enhancing revenue mobilization and increasing efficiency in spending," the IMF Executive Board said in the release.

The IMF said it expected Armenia's economic activity to pick up in 2017 and remain strong over the medium term, though downside risks and structural challenges remain.

"Armenia has been facing challenging external conditions which have contributed to subdued domestic demand, weak fiscal revenues, and deflationary conditions," IMF Deputy Managing Director and Acting Chair Tao Zhang said in the statement. "Nonetheless, program performance has been satisfactory. All end-December 2016 quantitative performance criteria, indicative targets, and structural benchmarks were met."

Zhang also welcomed the country's growth-promoting initiatives, saying efforts to strengthen domestic competition and implement regulatory reforms were pivotal to promoting private sector development and diversifying the economy.