The International Monetary Fund has reached a staff-level agreement with Armenia on the second review of its three-year Stand-By Arrangement (SBA) and a new $262mn climate resilience programme, with both agreements expected to go before the IMF’s Executive Board in December.
Approval of the second SBA review would release a further $25mn, bringing total disbursements under the programme, launched in December 2025, to about $75mn, the IMF said on November 12.
The proposed Resilience and Sustainability Facility (RSF) would provide access to up to SDR193.2mn ($262mn), subject to successful completion of four reviews over the next two years.
The SBA supports macroeconomic stability and structural reforms, while the new facility will finance measures to strengthen resilience to natural disasters and climate-related shocks, including improvements in water and electricity management, disaster risk preparedness and climate data reporting.
Armenia’s economy is expected to grow by 5.5% in 2026, down from 7.1% in 2025, while inflation is forecast to reach 4.8% by year-end, above the central bank’s 3% target.
“Downside risks to the outlook stem largely from the challenging geopolitical environment, including the Middle East conflict, which puts upward pressure on inflation and could negatively affect exports,” said Alexander Tieman, who led the IMF mission.
The government forecasts a fiscal deficit of 4% of GDP this year, while its draft 2027 budget targets a reduction to 3.4%.
The IMF also welcomed recent interest rate increases by the Central Bank of Armenia, which raised its policy rate by a cumulative 50 basis points in September and November to contain inflationary pressures.
—
Disclaimer: This article was contributed and translated into English by Tambiyan Samvel. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
Direct link to this article: https://www.armenianclub.com/2026/11/14/imf-reaches-agreement-with-armenia-on-262mn-climate-resilience-facility/