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Armenia takes a loan from the International Monetary Fund. will be used to finance the state budget deficit – 2024-03-29 07:28:55

2024-03-29 07:28:55

The RA NA Standing Committee on Financial, Credit and Budgetary Issues, under the chairmanship of Gevorg Papoyan, at the extraordinary meeting convened on March 7, discussed with the first reading the “” between the Republic of Armenia and the International Monetary Fund in 2022″ authored by the Government. the draft law “On ratifying the letter-agreement on the use of funds of the reserve program” signed on January 11 and January 18.

RA Deputy Minister of Finance Vahe Hovhannisyan noted that in 2019, the International Monetary Fund (IMF) In May, the three-year Stand-by Arrangement worth 180 million PYG (248.2 million USD) was approved for the Republic of Armenia, aimed at the implementation of fundamental and structural economic reforms.

In the framework of the second review of the program, as a result of the negotiations with the representatives of the IMF, an agreement was reached to change the purpose of the program and to use the funds available under the Reserve Program in order to finance socio-economic measures aimed at mitigating the consequences of the new coronavirus pandemic. As a result, in 2020 On May 23 and June 1, the Republic of Armenia and the IMF signed the letter-agreement “On the Use of Reserve Program Funds and the Involvement of Additional Borrowed Funds”, by which a total of 231.656 million IDR (315 million USD) became available. budget funds in volume.

2021 In October-November, the fourth and fifth joint revisions of the Reserve Program took place, as a result of which budget funds of 51.428 million HPI became available. Due to the need to finance the deficit of the state budget, the Government of the Republic of Armenia in 2021 on November 19, with a “Letter of Intent” it applied to the IMF in order to attract the available funds as budgetary support.

2022 between the Republic of Armenia and the International Monetary Fund. The letter-agreement “On the use of funds of the reserve program” signed on January 11 and January 18 creates additional financial obligations for the RA state budget.

The disbursement of loan funds to be received under the letter-agreement is planned for 2022. during the first quarter, and the loan will be directed to RA in 2022. financing of the state budget deficit. Validation of the document is related to “Ar. 2022. with the Law of the Republic of Armenia “On the State Budget”. It was also mentioned that in the letter-agreement, it is planned to provide Armenia with a budgetary support loan equivalent to 51.428 million HPI under the Reserve Program. It will be repaid within 5 years.

The letter-agreement will enter into force after receiving the relevant letter from the Ministry of Foreign Affairs of the Republic of Armenia and notifying the IMF by the Ministry of Finance of the Republic of Armenia on the completion of domestic procedures for ratification or approval in accordance with the Law of the Republic of Armenia “On International Treaties”.

The Chairman of the Standing Committee, Gevorg Papoyan, highlighted the adoption of the draft law in a related speech, and called on his colleagues to vote in favor. The commissioners gave a positive conclusion to the project.

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