The International Monetary Fund (IMF) reports that it has reached a staff-level agreement to provide Special Drawing Rights (SDR) 128.8 million ($165.6 million) to support Armenia’s economic program to achieve investment-driven, knowledge-based, and export-led growth, while preserving macroeconomic, fiscal, and financial stability and reducing poverty.

The agreement is subject to approval by the IMF Executive Board, which is expected to consider it in December 2022.

The three-year precautionary Stand-By-Agreement follows the visit of an IMF staff team to Armenia from September 26 to October 6.

The IMF reports that Armenia is on course to achieve growth of about 11 percent in 2022, in part driven by large inflows of external income, capital, and labor into the country.

“Economic growth is expected to decelerate in 2023, reflecting weaker external demand and tighter global financial conditions, and to remain in the 4-5 percent range over the medium term,” notes the IMF.

In an economic crisis, countries often need financing to help them overcome their balance of payments problems. Since its creation in June 1952, the IMF’s Stand-By Arrangement (SBA) has been the workhorse lending instrument for emerging and advanced market countries.