13:21, 4 June, 2020

YEREVAN, JUNE 4, ARMENPRESS. The Government of Armenia approved the letter-agreement signed on May 23 and June 1 between the Republic of Armenia and the IMF.

Minister of Finance Atom Janjughazyan said that the agreement is about a new loan from the IMF.

‘’At the end of the last year economic growth was predicted for more than 170 countries, while the predictions of April show those countries will record economic decline. 3.5% economic decline is predicted for the global economy. Therefore, this situation cannot have no impact on our budget. It’s supposed that the decline will lead to reduction of tax revenues, which in turn will increase the deficit in case of preserving the same level of expenditures. Involvement of borrowed funds is necessary for funding the deficit. This will automotically lead to increase of debt'', Janjughazyan said.

At the moment 280 million USD is available for Armenia and another 35 million USD will become available after a second revision of the program. The program was approved in 2019, according to which Armenia will take loans from the IMF only in case of external shocks.

Edited and translated by Tigran Sirekanyan