The World Bank’s Board of Executive Directors approved a $200 million (€170.3 million) Economic Transformation Development Policy Operation to support Armenia’s transition to a more competitive and globally integrated economy that will also have an emissions control and management system. In addition, the OPEC Fund intends to provide up to USD 92.8 million equivalent (EUR 80 million) of financing in parallel, bringing the total support package to approximately USD 290 million (EUR 250 million).
“Armenia’s Economic Transformation Development Policy Operation” supports a multi-sectoral reform agenda aimed at modernizing Armenia’s investment and business environment, strengthening competition and consumer protection, as well as strengthening resilience in the country’s fiscal and regulatory systems.
“Armenia has an ambitious reform agenda, and we support the country’s efforts to build a more open, competitive and sustainable economy,” said Fabrizio Dzarcone, head of the World Bank’s Armenia office. “The transition to a more diversified and resilient economy will create growth conditions that will be favorable for every citizen.”
The operation is based on two pillars. The first focuses on realizing investment and trade potential and promoting competition. The reforms include modernizing the legal framework for investment, increasing the efficiency of customs processes, reducing import processing times by 20 percent, as well as strengthening the consumer protection system and curbing unfair trade practices. The reforms also support the adoption of fundamental laws for the digital economy, including improving cybersecurity governance.
The reforms carried out within the framework of the Second Henasian aim to contribute to the creation of a more resilient economy and complement the agenda of the First Henasian reforms by contributing to the introduction of a responsible emissions management system. Key measures include the adoption of a new “Climate” law that supports the use of climate budget “labelling” in the state budget, the creation of a national greenhouse gas emission permit system, and the introduction of a green taxonomy to standardize a system for defining and classifying actions for sustainable economic growth in the economy, which will help attract private investment for them.
The development of the operation was supported by the Climate Support Fund and the PROGREEN Trust Fund, which provided technical and analytical support for the climate reform components. The implementation of the operation is the RA Ministry of Finance. The Ministry of Economy, the Ministry of Environment, the State Revenue Committee, the Competition and Consumer Protection Commission and the Ministry of High-Tech Industry act as the main supporting agencies.
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