YEREVAN, July 6. /ARKA/. The week in the Armenian financial market was dominated by regulatory and institutional adjustments. The focus was on currency dynamics, banking regulation, the capital market, money transfers, social and financial instruments, and interactions with international financial institutions.
1. Banks and Compliance: Bank Restructuring Mechanism Introduced Instead of Liquidation
On July 3, the National Assembly of Armenia approved the Law “On Bank Restructuring” and several related laws. The law proposes the introduction of a bank restructuring mechanism, with exclusive jurisdiction vested in the Central Bank of Armenia. The key instruments envisaged include bank sales, the “bridge bank” mechanism, the separation of problem assets, and other measures aimed at stabilizing a bank without liquidation.
This is important for the banking sector, as it creates a new mechanism for responding to a significant deterioration in a bank’s financial condition. The development of a separate regime for dealing with problem banks could strengthen the institutional framework for financial stability and reduce the system’s dependence on liquidation procedures.
2. Foreign exchange market: dollar remains virtually unchanged, euro and ruble rise
According to the Central Bank, the dollar-to-Armenian dram exchange rate fell slightly over the week, from 368.06 drams on June 29 to 367.79 drams on July 3. The euro rose from 419.81 drams to 421.01 drams, and the ruble rose from 4.7315 drams to 4.7586 drams.
Exchange rate parameters for import, export, foreign currency loans, and cross-border payments remain key for businesses, which could, in practice, maintain the functioning of foreign exchange planning despite moderate changes in major currencies. 3. Social Finance: Reverse Mortgages for Pensioners to Be Introduced in 2027
On July 3, the Armenian Parliament adopted amendments to the Civil Code, introducing reverse mortgages for pensioners and a new type of property rights for spouses. According to Nane Ghazaryan, Deputy Chair of the RA Cadastre Committee, this expands the opportunities for citizens to exercise their property rights and creates an additional financial instrument that allows them to turn the value of their property into a stable source of income.
For clients, the mechanism allows them to retain ownership of their home while receiving payments secured by the property.
In practice, this could expand the range of financial instruments at the intersection of banking, real estate, and social policy.
4. New Appointment: Fabrizio Zarcone Appointed Head of the World Bank Group in Armenia
Fabrizio Zarcone assumed his new position as Head of the World Bank Group in Armenia on July 1, with expanded responsibilities. The new format envisages the unification of the leadership of the World Bank Group structures in Armenia to provide more comprehensive support for the priorities of the country’s public and private sectors. This could strengthen the coordination of international support for the public and private sectors, including infrastructure, the investment environment, and SME access to finance.
5. Remittances: Net inflow increased 2.12-fold over 5 months
According to the Central Bank of Armenia, the net inflow of cross-border transfers to individuals in Armenia through the banking system in January-May 2026 amounted to $1.08 billion, compared to $511.7 million for the same period in 2025. In May, the figure was $356.8 million, compared to $238.3 million the year before. Russia and the United States remained the main destinations for remittances to Armenia.
In practice, this could increase the role of cross-border transfers in servicing individuals, foreign exchange transactions, and the payment activity of the population.
6. Capital Market: Participant limit for non-public investment funds increased to 99
On July 3, the National Assembly of Armenia approved an amendment to the Law “On Investment Funds.” The maximum number of participants in a non-public investment fund has been increased from 49 to 99.
The new limit clarifies the regulatory framework without changing the key characteristic of a non-public fund—the prohibition on public offerings of securities.
This could expand the scope for structuring investment funds and align regulation with the current market scale.
Weekly Summary
Last week, the primary focus shifted toward strengthening the regulatory framework, expanding investment infrastructure, and servicing growing financial flows from the population. Key factors remain currency dynamics, financial stability mechanisms, stock market development, and the quality of client flows in the banking system.
