YEREVAN, May 4. /ARKA/. Last week, the focus in Armenia was on changes in bank taxation, the development of a new law on payment services, and the transformation of investment companies. Personnel changes also took place at international financial institutions, and currency dynamics were moderate.
1. Banks and Taxation: Dividend Tax for Bank Shareholders Planned to Increase to 15%
On April 30, the Armenian government approved amendments to the Tax Code and the Law “On State Duty,” which, among other things, provide for changes in taxation of the banking sector. In the case of profit distribution to shareholders, the dividend tax rate will be 15% instead of the standard 5%.
For the banking sector, this may be related to regulating the withdrawal of capital from the system and preserving the resource base. This will affect profit distribution policies, bank capitalization, and shareholder approaches to managing investment returns.
2. Payments and Fintech: The Central Bank is Developing a New Law on Payment Services
A new law on payment services is being developed in Armenia, announced Hovhannes Khachatryan, Deputy Chairman of the Central Bank of Armenia, at the Fintech 360 forum held on April 28. The updated regulatory framework is intended to strengthen corporate governance and oversight mechanisms and enhance consumer protection. The law will facilitate market entry for new participants and promote the implementation of risk-based regulation.
The updated regulatory framework could signal the payments market’s transition to a more technologically advanced model, where settlement speed, risk-based regulation, and customer protection are paramount.
3. Capital Markets: Government Bonds Worth Over 112.5 Billion AMD Placed on AMX
On April 29, the Armenia Securities Exchange (AMX) held auctions to place government bonds worth over 112.5 billion drams. The bonds were placed with maturities ranging from 1 to 11 years and annual coupon yields ranging from 7.6% to 9%. The government bonds are available both on the AMX trading platform and on the online platform gp.minfin.am.
This may support debt market liquidity and expand the range of instruments for banks, institutional, and private investors.
4. Foreign Exchange Market: The Dram Ended the Week with a Moderate Strengthening Against the Dollar
According to the Central Bank, the dollar depreciated from 371.56 to 370.78 drams from April 27 to 30. During this period, the euro exchange rate fluctuated between 436.43 and 434.41 drams, while the ruble exchange rate declined slightly, from 4.9449 to 4.9378 drams.
This dynamic may indicate that the daily adjustment of official exchange rates will be maintained without abrupt changes, which supports the predictability of settlements, import payments, and short-term currency planning for companies.
5. Investment Sector: Armbrok Rebranded as ROQ Capital
On April 29, the investment company Armbrok launched its operations under a new brand: ROQ Capital. The company’s primary mission is to provide investment services that meet international standards and strives to be a reliable partner for both Armenian and international investors.
This transformation may indicate a refresh of the company’s product line and corporate identity, as well as adaptation to the changing conditions of the investment services market. 6. International Institutions: IMF and ADB Staff Changes in Armenia
Natalia Novta will become the new IMF Resident Representative in Armenia in August, replacing Umang Ravat. At a meeting with Armenian Deputy Prime Minister Tigran Khachatryan on April 29, she confirmed her commitment to further strengthening effective cooperation between the country and the IMF.
On the same day, the Asian Development Bank announced the appointment of Lyaziza Sabyrova as ADB Resident Representative in Armenia. She expressed her intention to continue close collaboration with the government and partners in Armenia to support sustainable, inclusive, and resilient development.
These staff changes may indicate continued institutional engagement with international financial institutions, including macroeconomic support programs and investment projects.
Weekly Summary
The week showed that the main focus was on changes in banking regulation, the development of payment infrastructure, and the transformation of the investment sector.
