ArmInfo. The World Bank's Board of Executive Directors today approved the $200 million (EUR 170.3 million) Economic Transformation Development Policy Operation to support Armenia's transition toward a more competitive, and globally integrated economy that manages emissions responsibly. In addition, the OPEC Fund intends to provide parallel financing of up to $92.8 million equivalent (EUR 80 million), bringing the total support package to approximately $290 million (EUR 250 million).
The Armenia Economic Transformation Development Policy Operation supports a multisectoral reform agenda aimed at modernizing Armenia's investment and business environment, strengthening competition and consumer protections, and embedding resilience into 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 Zarcone, World Bank Country Manager for Armenia. "Transitioning towards a more diversified and resilient economy will create the conditions for growth that benefit every citizen."
The operation is structured around two pillars. The first focuses on unlocking investment and trade and fostering competition. The reforms include modernization of the legal framework for investment, streamlining customs processes, targeting a 20 percent reduction in import processing times, and strengthening consumer protection and limiting unfair commercial practices. The reforms also support the adoption of laws that are foundational for the digital economy, including improving cybersecurity governance.
Reforms under the second pillar aim to enable a more resilient economy and complement the first pillar by facilitating investments that manage emissions responsibly. Key measures include the adoption of a new Climate Law which supports applying climate budget tagging across the state budget, the establishment of a national Greenhouse Gas Emissions permitting system, and the introduction of a green taxonomy to standardize a classification system for defining and encouraging private financing for sustainable economic growth activities across the economy, The operation was supported by the Climate Support Facility and the PROGREEN Trust Fund, which provided technical and analytical assistance for the climate-related reform components. Implementation will be led by Armenia's Ministry of Finance, with 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 serving as key supporting agencies.
The World Bank is committed to continuing its support to Armenia in its development path for reducing poverty on a livable planet. Since 1992, the World Bank has provided around $3 billion, including a current portfolio of around $420 million in investment lending in addition to grants, analytical work, and technical assistance to Armenia from the International Bank for Reconstruction and Development (IBRD), trust funds, and the International Development Association (IDA), to which Armenia also became a donor in 2023.
