Dev Discourse
April 9 2020
Reuters | Updated: 10-04-2020 01:09 IST | Created: 10-04-2020 01:09 IST
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The European Union is ready to provide 92 million euros ($100 million) to help support Armenia's economy and healthcare system as it battles to curb the South Caucasus' worst outbreak of the new coronavirus.
In a further boost for Armenia, the International Monetary Fund said its mission had reached an agreement with the government under an existing programme for a funding increase of about $175 million, subject to approval by the IMF's executive board. The former Soviet republic of around 3 million people had reported 921 cases of the virus by Thursday. Ten people have died after contracting the virus.
The EU said the 92 million euros it will provide will be directed at supplying medical devices and equipment, training for medical and laboratory staff, support for small and medium-size enterprises, the business community and social and humanitarian assistance for those affected by the virus. The IMF said in a statement that its additional funding would help the authorities meet "urgent medical and socio-economic needs" during the coronavirus outbreak and help preserve the gains in Armenia's "economic potential and inclusion" in recent years.
The Fund said Armenia's economic growth was expected to be -1.5% this year, revising down its previous growth forecast of 4.8%, "given COVID-related restrictions on domestic mobility and activity, substantially lower external demand, tighter financial conditions, and disruptions in global trade and supply chains." The government in neighbouring Georgia also expects support from international financial institutions.
Selim Cakir, the International Monetary Fund's resident representative in Georgia, said in an open letter that the IMF and a range of international bodies including the World Bank Group and Asian Development Bank as well as France and Germany were discussing a substantial financial relief package. Bidzina Ivanishvili, the ex-Soviet country's richest man and leader of the ruling Georgian Dream Party, transferred 100 million lari ($31 million) to a special support fund. The total amount of transfers from Georgian private companies and businessmen totalled more than 124 million lari.
The country of 3.7 million had reported 218 coronavirus cases as of Thursday, with three deaths. ($1 = 0.9205 euros) (Nvard Hovhannisyan in Yerevan, Margarita Antidze in Tbilisi; Writing by Margarita Antidze; Editing by Timothy Heritage)
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