Key developments and challenges

The authorities have continued to deregulate the economy and establish frameworks for competition and improved governance. Reforms of business regulations, property rights and public inspections have been introduced, competition legislation was improved and a law on conflict of interest was adopted.

A new mining code was approved. The new code is expected to improve the investment environment in the sector and lead to greater revenues over time, as taxation of the sector will be more closely tied to the sale of ores rather than reserves.

The authorities continue to implement policies to stimulate capital market development and reduce dollarisation. The central bank continued to tighten the regulatory framework to encourage the use of local currency by obliging banks to keep required reserves in AMD. Regulations were adopted to enable issuance of foreign currency bonds by local enterprises and banks.