YEREVAN, March 31. /ARKA/. Armenia will receive $200 million (€170.3 million) from the World Bank to support its transition to a more competitive, globally integrated economy with responsible emissions management. The World Bank’s Board of Executive Directors approved the corresponding “Armenia Economic Transformation Policy Program” yesterday.
“In addition, the OPEC Fund intends to provide parallel financing to Armenia in the amount of up to $92.8 million (€80 million). Thus, the total support package could reach approximately $290 million, or €250 million,” the World Bank said in a statement.
“Armenia has an ambitious reform agenda, and we support the country’s efforts to build a more open, competitive, and resilient economy,” said Fabrizio Zarcone, World Bank Country Manager for Yerevan.
According to him, the transition to a more diversified and sustainable economy will create conditions for growth that benefits every citizen.
The “Program for the Development of Economic Transformation Policy in Armenia” provides support for a multi-sector reform agenda aimed at modernizing the investment and business climate, strengthening competition and consumer protection, and enhancing the sustainability of the country’s fiscal and regulatory systems.
It includes two key areas. The first is focused on stimulating investment and trade, as well as developing competition. Specifically, it envisages modernizing the legal framework for investment, simplifying customs procedures to reduce import processing times by 20%, strengthening consumer protection, and curbing unfair commercial practices. The reform package also includes modernizing the legal framework for investment and streamlining customs procedures.
The second area is aimed at increasing economic resilience and promoting investment, taking into account the climate agenda. Key measures include the adoption of a new climate law, the introduction of climate labeling for the budget, the creation of a national system of greenhouse gas emissions permits, and the introduction of a “green taxonomy” to standardize the classification system and stimulate private financing for sustainable projects across various sectors of the economy.
The World Bank has pledged to continue supporting Armenia on a development path aimed at reducing poverty while maintaining environmental sustainability.
Since 1992, the World Bank has provided approximately $3 billion to Armenia, including a current investment lending portfolio of approximately $420 million, as well as grants, analytical, and technical support from the International Bank for Reconstruction and Development (IBRD), trust funds, and the International Development Association (IDA), of which Armenia became a donor in 2023.
