World Bank approves $200M reform package for Armenia

(Horizon Media) – The World Bank has approved a $200 million development policy operation aimed at supporting Armenia’s economic transformation and strengthening its climate governance framework.

In a statement, the institution said the program is designed to help Armenia build a more competitive, globally integrated economy while advancing systems to monitor and manage emissions more effectively.

Additional support is expected from the OPEC Fund for International Development, which is considering parallel financing of up to $92.8 million. If finalized, total backing for the initiative could approach $290 million.

The initiative, titled the “Armenia Economic Transformation Development Policy Operation,” focuses on a wide-ranging reform agenda. Planned measures include improving the investment and business climate, strengthening competition and consumer protection mechanisms, and reinforcing fiscal and regulatory resilience.

World Bank Country Manager for Armenia Fabrizio Zarcone said the program supports Armenia’s efforts to develop a more open, competitive, and sustainable economic model, adding that greater diversification would help generate broader-based growth.

The reform package is structured around two main pillars. The first centers on boosting investment and trade while enhancing market competition. Key steps include updating the investment legal framework, improving customs procedures, cutting import processing times by roughly 20 percent, and tightening safeguards against unfair trade practices. The package also предусматривает legislative changes to support the digital economy, including stronger cybersecurity governance.

The second pillar targets climate policy and environmental governance. Planned actions include adopting a new climate law, introducing climate-focused budget tracking, establishing a national greenhouse gas emissions permit system, and implementing a “green taxonomy” to guide sustainable investment.

According to the World Bank, the program was developed with support from the Climate Support Facility and the PROGREEN trust fund, which provided technical and analytical input on climate-related reforms.

Implementation will be led by Armenia’s Ministry of Finance, in coordination with the Ministries of Economy and Environment, the State Revenue Committee, the Competition and Consumer Protection Commission, and the Ministry of High-Tech Industry.