In Armenia we focus on:
Improving municipal and urban transport infrastructure. The EBRD will support enhanced private sector participation in the water and waste water sectors to support the introduction of cost-reflective tariff structures, improve service availability and reduce losses. We will support through our investments urban and municipal transport reforms including the introduction of integrated transport management and ticketing systems, better parking management and regulation of feeder bus and minibus services. Intensive policy dialogue will be required to support reforms at the central and local levels.To address affordability and debt capacity constraints, a high level of grant co-financing will be required along with gradual tariff increases toward cost recovery.
Developing agribusiness and high value-added, export-oriented industrial companies. The EBRD will help to address challenges in the industrial sectors through support for improvements to the business environment, strengthening corporate governance and increasing access to finance for local micro, small and medium sized enterprises (MSMEs). We will identify investments in industries with export potential, including in areas highlighted by the authorities’ recent programme of export promotion. The EBRD will aim to support the agricultural sector by targeting investments along the whole value chain. Where possible, we will aim to utilise local currency financing. The EBRD will also enhance activities to support MSMEs in key sectors through provision of advisory services.
Improving the regulatory and institutional framework for sustainable energy and increasing value-added in the mining sector. The EBRD will support investments in financially viable renewable energy projects and, through partner banks, continue to finance energy efficiency credit lines for industrial and residential users. We will support power generation, particularly new entrants and non-state participants, and will consider participating in regional electricity infrastructure projects that strengthen competition in the regional electricity market. The EBRD will support bankable mining operations with reputable investors who demonstrate high standards of environmental and social protection.
The EBRD’s latest Armenia strategy was adopted on 29 May 2012
EBRD forecast for Armenia’s Real GDP Growth in 2015 0%
The economy has been unable to sustain the high-growth momentum of previous years. Weak investor activity and household consumption restrained domestic demand, while exports and remittances suffered from the slow-down in Russia.
Reform progress has been uneven. The government has taken important steps towards air traffic liberalisation, but further progress is needed to level the playing field for businesses and to reduce the number of monopolies in the economy.
- Progress has been made towards integration into the Eurasian Economic Union (EEU). In October 2014 Armenia signed the EEU accession treaty with the presidents of Belarus, Kazakhstan and Russia. The EEU will come into force in January 2015.