WASHINGTON, DC — The World Bank and the OPEC Fund will provide Armenia with a loan package of approximately $290 million, aimed at boosting economic competitiveness and introducing emissions management systems. The main portion of the package—$200 million—will be provided by the World Bank, while the remaining $92.8 million will be allocated by the OPEC Fund as parallel financing.
The “Armenia Economic Transformation Development Policy Operation” supports a broad reform agenda focused on modernizing Armenia’s investment and business environment, strengthening competition and consumer protection, and increasing 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. The transition to a more diversified and resilient economy will create growth conditions that benefit every citizen,” said Fabrizio Zarcone, the World Bank’s Country Manager for Armenia.
According to the statement, the operation is built on two pillars.
The first pillar focuses on unlocking investment and trade potential while promoting competition. The reforms include modernizing the legal framework for investments, improving the efficiency of customs procedures, reducing product import processing times by 20 percent, strengthening consumer protection systems, and limiting unfair trade practices. The reforms also support the adoption of foundational laws for the digital economy, including improvements in cybersecurity governance.
The second pillar aims to help create a more resilient economy and complements the first pillar’s reform agenda by supporting the introduction of a responsible emissions management system. Key measures include the adoption of a new Climate Law, support for climate budget “tagging” within the state budget, the creation of a national greenhouse gas emissions permitting system, and the introduction of a green taxonomy—a standardized framework for defining and classifying sustainable economic activities. This is expected to help attract private investment into those sectors.
The operation was also supported during its preparation by the Climate Support Facility and the PROGREEN Trust Fund, which provided technical and analytical assistance for the climate reform components.
The implementing body for the program is Armenia’s Ministry of Finance of Armenia. The Ministry of Economy of Armenia, Ministry of Environment of Armenia, State Revenue Committee of Armenia, Competition Protection Commission of Armenia, and Ministry of High-Tech Industry of Armenia will serve as the main supporting agencies.
