Cover -- CONTENTS -- CONTEXT AND RECENT DEVELOPMENTS -- OUTLOOK AND RISKS -- FIRST REVIEW UNDER THE EXTENDED ARRANGEMENT -- A. Fiscal Policy -- B. Monetary and Exchange Rate Policy -- C. Financial Sector Policy -- D. Structural Issues -- E. Program Issues -- ARTICLE IV DISCUSSIONS: REDUCING VULNERABILITIES AND INCREASING POTENTIAL GROWTH -- A. Reducing vulnerabilities -- B. Increasing Potential Growth and Inclusiveness -- STAFF APPRAISAL -- BOXES -- 1. Policies since the 2012 Article IV Consultation -- 2. Spillovers from Global and Regional Developments to Armenia -- 3. Constraints to Potential Growth -- FIGURES -- 1. Labor Market -- TABLES -- 1. Armenia: Selected Economic and Financial Indicators, 2009-16 -- 2. Balance of Payments, 2009-19 -- 3. Monetary Accounts, 2009-15 -- 4. Financial Soundness Indicators for the Banking Sector, 2009-14 -- 5. Central Government Operations, 2009-16, (In percent of GDP) -- 6. Central Government Operations, 2009-16, (In billions of dram) -- 7. Medium-Term Macroeconomic Framework, 2009-19 -- 8. Indicators of Capacity to Repay the Fund, 2011-19 -- 9. External Financing Requirements and Sources, 2013-17 -- 10. Fund Disbursements and Timing of Review Under a 38-Month Arrangement Under the Extended Fund Facility -- APPENDICES -- I. Letter of Intent -- Attachment I. Technical Memorandum of Understanding -- ANNEXES -- I. Armenia's Accession to the Eurasian Economic Union -- II. Pension Reform: Recent Developments and Changes -- III. Reserve Metrics and External Stability Assessment -- IV. Public Debt Sustainability Analysis -- V. Real Exchange Rate Assessment -- CONTENTS -- FUND RELATIONS -- WORLD BANK AND IMF COLLABORATIONS-JMAP IMPLEMENTATION -- RELATIONS WITH THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) -- RELATIONS WITH THE ASIAN DEVELOPMENT BANK (ASDB) -- STATISTICAL ISSUES.