The European Commissioner for Economic and Monetary Affairs Olli Rehn has signed on behalf of the EU the Memorandum of Understanding with the Republic of Armenia setting forth the economic policy conditions for the provision of macro financial assistance (MFA) to Armenia in the form of a loan of up to €65 million and a grant of up to €35 million. The assistance will support the adjustment programme agreed between Armenia and International Monetary Fund (IMF) to help the country through the global crisis, says the statement posted on EU website.  

The planned assistance is part of the external financing provided to cover Armenia’s balance of payment needs in 2011.  It supports the economic adjustment and reform programme of the Armenian authorities designed to achieve sustainable medium-term growth. The first instalment, amounting to EUR 40 million, will be released after the ratification of the Memorandum of Understanding and the Loan and Grant Agreements by the Armenian Parliament. The release of the second instalment is planned for autumn 2011.