Armenia
Member since
Armenia
The country strategy of the Eurasian Development Bank
Objective 1
Facilitating the development of sustainable infrastructure
One of the EDB’s objectives until 2026 will be to support projects that build and upgrade basic infrastructure to protect the country’s energy and transport security and sustainable economic development.
Roll up
Priority 1.1
Developing and modernising energy infrastructure
In the strategy period to 2026, the EDB will work to diversify electricity generation sources in Armenia and promote its integration with the energy systems of neighbouring countries. Implementing renewable energy projects will also help to mitigate adverse environmental impacts in line with sustainable development principles. Developing renewable energy is a strategic priority of the Armenian government as it will help to diversify the energy mix and promote energy security. In addition, renewable generating facilities are a green source of energy, the development of which is supported by sustainable development principles. The EDB will focus on distributed solar power projects and the construction and modernisation of hydropower facilities. In pursuing Armenia’s energy development priorities, in addition to renewable energy, the Bank will work to modernise existing conventional generation facilities, including the project to extend the lifetime of Armenia NPP’s Unit 2. The sustainable development of Armenia’s energy system will require more investment in power grid efficiency. Relevant projects will enhance the reliability of power transmission as an element of the country’s energy security.
Roll up
Priority 1.2
Developing sustainable and safe industrial and transport infrastructure
The Bank will focus on projects promoting the sustainability and safety of industrial and transport infrastructure in Armenia. Priority projects will be those considered and developed by the Ministry of Economy and the Ministry of Territorial Administration and Infrastructure for their potential to launch during the new strategy period: modernising the Yerevan–Tbilisi cross-country railway infrastructure; developing rail and ferry links between the ports of Poti and Caucasus; increasing South Caucasus Railways’ investment in rail infrastructure; industrial projects to modernise the infrastructure for processing concentrates into crude metals; and projects to mitigate adverse environmental impact in industry (for example, processing of copper-molybdenum and goldcontaining tailings). The EDB will help implement projects that improve the efficient use of natural resources in basic industries and innovative transport projects. The Bank will focus specifically on projects that develop not only physical infrastructure but also management and transportation technology and their automation reflecting international best practice. As a development institution, the EDB will partner in financing projects to introduce fare collection systems in land transportation and develop public-private partnerships in transportation management. In passenger transportation, this could be the project currently under consideration to introduce competition into inter-city and inter-regional road networks.
Roll up
Objective 2
Diversifying industry and exports
The EDB’s mission is to promote a market economy in its member countries. One of the Bank’s priorities will be to support the development and growth of export-oriented enterprises. This is directly linked to the national objective to promote the country’s competitiveness and balance of trade. Armenia’s mining and agriculture are economic sectors with export potential. The Bank will also support job creation in the service sectors such as tourism and retail.
Roll up
Priority 2.1
Modernising and setting up new high-performance enterprises
The EDB aims not only to improve the living standards of people employed in industry by creating high-performance jobs and increasing output but also to unlock Armenia’s potential as an exporter of agricultural produce to EDB countries. To achieve this, the EDB will help to modernise and promote industrial development by financing projects that enhance the processing of raw materials and increase the added value of products. The Bank will prioritise projects oriented to both domestic and foreign markets
Roll up
Priority 2.2
Developing tourism and increasing the share of services, including digital ones, in foreign trade
Developing tourism and increasing the share of services, including digital ones, in foreign trade
Roll up
Objective 3
Food security
is crucial to Armenia’s sustainable economic growth in the strategy period to 2026. The EDB’s main objective is to help reduce dependence on imports of key agro-industrial commodities and to develop a food supply chain.
Roll up
Priority 3.1
Improving agricultural productivity
Despite agriculture’s importance to the Armenian economy, the sector is generally developing extensively. The EDB’s objective in this strategy period is to intensify agricultural development by financing projects that enhance raw materials processing and increase the added value of products. The Bank will prioritise projects oriented to both domestic and foreign food markets where there is continuous and substantial demand and focus on projects that increase the area of land used for agriculture and improve agricultural productivity. In particular, the EDB will focus on plans to build 15 water reservoirs in Armenia by 2026.
Roll up
Priority 3.2
Supporting the development of a commodity distribution network
Building a network of wholesale distribution centres is an integration priority that will help to implement large-scale cross-border projects in the EDB region. In the 2022–2026 strategy period, the EDB will actively explore opportunities for implementing such projects in Armenia. Over and above its integration effect, a high-quality logistics infrastructure would significantly enhance e-commerce development by promoting effective SME trade. The Bank will also focus on projects to introduce international quality standards for agricultural production and processing.
Roll up
Objective 4
Developing accessible financial services
In the new strategic period, the EDB will continue to support the development of Armenia’s financial system. The Bank will also work with banks to support targeted lending programmes. In addition, it will be open to other forms of cooperation with intermediaries, including participation in investment funds or innovative special-purpose vehicles. To further support enhancement of the country’s financial sector and government initiatives to de-dollarise the banking sector, the EDB will seek opportunities to lend in the national currency.
Roll up
Priority 4.1
Developing financial infrastructure
Armenia’s financial system demonstrates ‘mid-level’ development. The EDB’s Country Strategy targets the modernisation and digitalisation of the financial system and aims to encourage new investors and issuers, including those in EDB countries, to enter the market. This in turn will attract additional capital to Armenia’s financial markets and boost trading on stock exchanges. It will also develop new financial instruments (including derivatives) and increase the use of national currencies in capital markets and in trade with EAEU countries.
Roll up
Priority 4.2
Increasing the capacity of the financial services market, including with targeted SME financing programmes
The EDB has provided targeted loan facilities to Armenian banks for on-lending to local businesses. In the new strategy period, the Bank will continue to build the capacity of the financial services market and reduce interest rate spreads by providing targeted financing to Armenian commercial banks, including for SME support programmes.
Roll up
Objective 5
Digital transformation of the economy and public governance
The Armenian government identifies digital technologies as a strategic development objective. Today, technology is needed to ensure efficient governance and intensive economic development. As part of its digital agenda for Eurasian integration, the EDB will help to implement projects that exchange and disseminate the digitalisation expertise of the countries in which it operates and will finance projects that set up shared digital platforms. The Bank has established the Fund for Digital Initiatives to support digital transformation in its countries, including Armenia. To identify promising digital projects, the EDB will work closely with the country’s state authorities, including in respect of measures outlined in Armenia’s 2021–2025 Digitalisation Strategy and Plan of Action.
Roll up
Priority 5.1
Promoting the development of safe and sustainable digital solutions and infrastructure
As a regional digitalisation institution, the EDB will support projects during the strategy period that promote the development of Armenia’s digital infrastructure, including physical telecommunications infrastructure and digital platforms. It will also disseminate best practice as member countries implement e-government systems and digital public services. The Bank will support digital projects in the corporate sector that strengthen integration ties with Eurasian countries and contribute to SDGs.
Roll up
Priority 5.2
Improving the efficiency of data circulation
In the new strategy period, the Bank will support data circulation and management projects. Under its strategic objective to develop end-to-end cross-border transport corridors within the EAEU, the EDB will support potential digital services connecting Armenia to that project.
Roll up
EDB Investment Portfolio
As of august 2023
24 projects in five sectors:
2
Mining
14
Financial sector
1
Transport
4
Energy
3
Agroculture
16 November 2023
In the summer of 2023, Central Asia was faced once again with water shortages and the significant impact these have on agriculture. The sector relies on irrigation, consuming up to 80% of available water, and has a poor track record with regard to the efficient use of water resources. The irrigation infrastructure is over 50 years old. More than half of all irrigated land has become salinised and 40% of water is lost through irrigation canals. A new EDB study entitled “Efficient Irrigation and Water Conservation in Central Asia” outlines ten practical steps for preserving irrigated land potential and promoting water conservation. The list includes four recommendations for adoption at the regional level and six at the national level. The measures are designed to save enough water each year to support sustainable development. Implementing the measures will require collaboration between governments, farmers and multilateral development institutions. The need for urgent action is intensified by the anticipated reduction in the flow of the Amu Darya River
30 October 2023
On 28 October 2003, Yeremyan Projects launched its first world-class agro-industrial complex in Armenia’s Tashir community, Lori Region. The Eurasian Development Bank (EDB) provided US $32 million for this project
27 October 2023
The Eurasian Development Bank (EDB) and Russian-Armenian University (RAU) are launching collaborative research and training programmes focusing on public-private partnerships (PPP). A relevant memorandum was signed by Denis Ilin, EDB Senior Managing Director, and Sergey Kapinos, RAU Vice-Rector for International Cooperation
27 October 2023
The debut issue of three-year EDB bonds, denominated in US dollars, was included in the Armenia Securities Exchange’s (AMX) Abond main list as of 26 October 2023. Prior to that, the exchange’s infrastructure was modernised with a grant provided by the Eurasian Development Bank’s (EDB) Technical Assistance Fund, resulting in more than doubling the total value of listed securities. Nikolai Podguzov, Chairman of the EDB Management Board, made this announcement during his visit to Armenia
14 August 2023
The Eurasian Development Bank (EDB) is floating a debut bond issue on the Armenia Securities Exchange (AMX), bidding is taking place through Ardshinbank between 15 and 31 August 2023. The nominal value of the three-year issue is up to US $30 million, with a face value of US $1,000 per bond. The coupon period is 6 months with a coupon rate of 6% per annum
11 July 2023
The Eurasian Development Bank (EDB) has released the latest issue of the Macroeconomic Review for its six member states. This regular publication provides a roundup of the macroeconomic situation and projects near-term developments in the member countries. The review also contains detailed statistics on key macroeconomic indicators.
01 June 2023
The EDB has released its Macroeconomic Outlook for the Bank’s six member states. Bank analysts anticipate that the region’s economies successful adaptation to the new environment will support their growth this year. Positive growth rates are projected for all countries in the region: Armenia expected to grow by 7.5%, Belarus by 2.2%, Kazakhstan by 4.3%, Kyrgyzstan by 4.2%, Russia by 1%, and Tajikistan by 7.9%.
11 May 2023
A new report by the Eurasian Development Bank (EDB, Bank) examines the status and opportunities for low-carbon development in Eurasia. Energy, transport, industry, and the urban environment are the four pain points that need to be addressed in the first place. Coordinating countries in their low-carbon development efforts will help to avoid regulatory costs and internal trade barriers, enhance regional cooperation in line with green economy principles, and improve the competitiveness of regional producers. International development institutions play a crucial role in implementing the green agenda in lower-middle-income countries
13 April 2023
The EDB’s new analytical report, Food Security and Agro-Industrial Potential of the Eurasian Region, proves that agriculture is a key element of the long-term economic specialisation of the Eurasian Region. Calculations demonstrate that the region not only guarantees its own food security, but by 2035, it will also be able to fully provide food for 600 million people. To realize the region’s globally unique potential it is necessary to accelerate the development of the technological base of the agro-industrial complex, improve agro-logistics and storage systems, support major producers, stimulate cooperation among small farms, and eliminate barriers and restrictions on mutual trade within the EAEU.
05 April 2023
Armen Melikyan, Eurasian Development Bank’s (EDB) Director for Armenia, told about the peculiarities of solar projects in the EAEU+. At a discussion at the Armenia Fusion Solar Day, which brought together representatives of authorities and business circles, Armen Melikyan emphasised the Bank’s contribution to renewable energy
Yerevan Representative Office
Address:
Erebuni Plaza Business Centre, office 811, 26/1 Sargsyan St., Yerevan, 0010, Republic of Armenia
Tel:
+374 (10) 54 01 02
Fax:
+374 (10) 54 13 52
Email:
info@eabr.org
Key macroeconomic indicators as of March 2023
|
Indicator
|
2022
|
2023
|
Projections
|
|---|---|---|---|
|
GDP growth
|
2022
14,4%
|
2023
4,2%
|
Projections
Stabilisation of consumer demand, low external demand due to weaker global economic activity, increased exports to Russia and other EAEU countries
|
|
Year-end inflation
|
2022
8,3%
|
2023
4,6%
|
Projections
Weakening external price pressures, overvaluation of the dram and stabilisation of consumer demand
|
|
Refinancing rate, year’s average
|
2022
10%
|
2023
7,6%
|
Projections
Gradual reduction of the refinancing rate as inflation slows down
|
|
AMD/USD exchange rate, year’s average
|
2022
436
|
2023
438
|
Projections
Remittances and tourism are projected to support the appreciation of the Armenian dram, while surging imports will cause it to weaken
|
Publications
EDB Macroeconomic Outlook 2023–2025
01 June 2023
Efficient Irrigation and Water Conservation in Central Asia
16 November 2023