The World Bank has approved a $200 million Economic Transformation Development Policy Operation for Armenia, marking a significant step in supporting the country’s shift toward a more competitive, globally integrated, and environmentally responsible economy.
The financing package will be further strengthened by parallel support from the OPEC Fund for International Development, which plans to provide up to $92.8 million.
Together, the combined assistance amounts to approximately $290 million.
The program is designed to advance a broad set of reforms aimed at modernizing Armenia’s economic framework. It focuses on improving the investment climate, strengthening competition and consumer protections, and enhancing the resilience of 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, the World Bank country manager for Armenia. He emphasized that a more diversified and resilient economy would help ensure inclusive growth benefiting all citizens.
The operation is structured around two main pillars. The first centers on unlocking investment and trade while fostering competition. Planned reforms include modernizing investment legislation, streamlining customs procedures with a goal of reducing import processing times by 20 percent, and strengthening consumer protection mechanisms to curb unfair commercial practices.
It also supports the development of key legal frameworks for the digital economy, including improvements in cybersecurity governance.
The second pillar focuses on building economic resilience, particularly through climate-related measures. These include the adoption of a new climate law, the introduction of climate budget tagging across the state budget, and the establishment of a national greenhouse gas emissions permitting system. The reforms also promotes a green taxonomy to standardize the classification of sustainable economic activities and encourage private investment in environmentally responsible sectors.
The program has been supported by the Climate Support Facility and the PROGREEN Trust Fund, which provided technical and analytical assistance for the climate components.
Implementation will be led by Armenia’s Ministry of Finance, with key contributions from the Ministry of Economy, Ministry of Environment, State Revenue Committee, Competition and Consumer Protection Commission, and the Ministry of High-Tech Industry.
Since Armenia joined the World Bank in 1992, the institution has provided approximately $3 billion in support. Its current portfolio in the country includes around $420 million in investment lending, alongside grants, analytical work, and technical assistance. Armenia also became a donor to the World Bank’s International Development Association in 2023, reflecting its evolving role in the global development landscape.
