Investor Presentaiton
RESPONSE TO COVID-19
MONETARY RESPONSE
• The Central Bank of Armenia reduced the policy rate by 125 bps since March to
4.25% on September 15, 2020 and has since increased the policy rate by 100bps
on December 15, 2020 to 5.25%, and a cumulative 200 bps as of September 14,
2021 to 7.25%.
• FX swaps were used to support FX liquidity in the market
• Free-floating exchange rate allowed orderly adjustment of the exchange rate:
AMD depreciated by around 12% against the USD and then appreciated
somewhat settling at 4%, a depreciated level compared to the pre-pandemic level
• The CBA has enhanced engagement between banks and supervisors to
continuously assess the impact of the crisis on asset quality, capital, and liquidity
INTERNATIONAL FINANCIAL AID
• In May 2020, the IMF added SDR 128.8 million to its Stand-by Facility for Armenia, and
immediately took SDR 206.0 million thereunder as direct budget support. A further
disbursement of SDR 25.7 million was drawn in December 2020
• In November-December 2020, under European Union's EUR 92 million response
package to the COVID-19 pandemic in Armenia, EUR 35.63 million was allocated as
fixed tranche under the ongoing 4 budget support programs, repurposed for that aim,
as well as EUR 24 million and EUR 9 million were allocated respectively in the
framework of the signed Financing Agreements "COVID-19 Resilience Contract for
Armenia" (EUR 30 million) and "Support to Justice Sector Reforms in Armenia: Phase
I" (EUR 30 million) (entered into force on October 9, 2020)
• Under the Grant Agreement signed with ADB on August 27, 2020 ADB's Asia Pacific
Disaster Response Fund (APDRF) provided USD2 million to Armenia in December
2020 to support Armenia in mitigating the negative consequences COVID-19
• On June 30, 2020 Exchange of Notes was signed between the RA Government and
the Government of Japan, pursuant to which, for the purpose of contributing to the
implementation of the Economic and Social Development Programme, the
Government of Japan shall extend to Armenia a grant of JPY 400 million
In the scope of fight against COVID-19, Armenia has received aid from various
international organizations and foreign states, including UN (UNICEF, UNFPA, WFP),
ICRC, WHO, IAEA, USA, Russian Federation, China, Southern Korea and European
countries.
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