Tuesday, December 6 2016 18:24
Emmanuil Mkrtchyan

EFSD council approves disbursement of second tranche of the EFSD financial credit of US$ 100 million to Armenia

ArmInfo. The Council of the  Eurasian Fund for Stabilisation and Development (the EFSD, the Fund)  has approved disbursement of the second tranche of the EFSD financial  credit of US$ 100 million to the Republic of Armenia. The official  website of the Eurasian Development Bank reports that the key areas  of reforms supported under the EFSD programme include strengthening  the financial soundness of the energy sector, raising the efficiency  of the public finance management, and improving the investment  climate. In the framework of the programme, the reforms to promote  de-dollarization of the economy, greater credibility of the banking  sector, and higher exports have also been continued. The assessment  of Armenia's performance prepared by the Manager is generally  positive.

Implementation of the tranche's conditionalities had a positive  effect on strengthening the financial sustainability of the energy  sector. Owing to improved methodologies of tariff margin calculation  and the forecast of electricity generation and distribution aimed at  greater flexibility of the tariff policies and enabling demand and  supply shock smoothing, the Electric Network of Armenia CJSC [closed  joint-stock company] has fully repaid accumulated arrears to the  Armenian NPP, Yerevan CHP, and the High-Voltage Network totalling US$  50 million that is equivalent to 56% of the companies' electricity  supply (turnover) over the period of the arrears repayment (December  2015 - July 2016).

A range of legislative acts have been developed to improve the  efficiency of the public finance management. In early October 2016,  the National Assembly of Armenia adopted the first ever national Tax  Code that streamlines and improves the tax legislation in the  framework of a single document. With the Tax Code coming into effect,  the tax potential of the economy will be significantly  strengthened-the cumulative growth of tax revenues in 2017-2021 is  estimated at 2% of GDP-and the tax policies will become more stable  and predictable. Amendments to the Procurement Law have been  presented for the consideration of the National Assembly of Armenia  to expand the practice of electronic public procurement for the needs  of government bodies, thus facilitating more efficient budget  spending and reducing risks of corruption. The reforms to improve the  investment climate have been continued. 

Simplified and expanded access of potential investors to information  detailing the rules of doing business in construction, as well as  expanded practice of using an electronic system of issuing  construction permits will help reduce transaction costs in the  construction sector and make the sector more attractive for  investors. A register of moveable assets has been created to improve  accessibility of credit for the private sector by introduction a  secured transaction framework and to reduce the cost of loans by  lowering the risk premium. The country's monetary authorities have  adopted a range of regulatory and legal acts aimed at reducing the  level of dollarization of deposits and loans, strengthening the  credibility of the banking system and promoting exports.  These  measures have serves as an additional incentive for exports  development that has been the key driver of Armenia's economic growth  in recent years.

One indicative condition had not been met by the control date for the  second tranche (1 October 2016). It is related to establishing 10 new  centres of integrated social services operating as 'one stop shops'  to supplement the 18 centres created under the first tranche. The  failure to implement this measure is explained by the fact that the  premises transferred to the Ministry of Labour and Social Affairs in  late 2015 - early 2016 to house the centres of integrated social  services did not meet the seismic resistance standards, therefore a  range of additional measures had to be taken resulting in delays in  implementing the steps. The Ministry has drafted a new schedule of  launching 20 centres of integrated social services, under which only  two centres are to become operational by the control date for the  third tranche (1 October 2017), while the remaining centres will  become operational in 2018. The Fund Council has recommended the  Government of the Republic of Armenia to reconsider and agree with  the Manager the parameters of this condition for the third tranche in  accordance with the new schedule of launching the centres of  integrated social services.

The EFSD Council has also recommended to supplement the  conditionality of the third tranche of the financial credit with new  control targets aimed at maintaining the fiscal and debt  sustainability and present the updated reform programme for the  consideration of the EFSD Council in early 2017. These adjustments  will, in particular, facilitate lowering the budget deficit in 2017  to the level of 2.8% of GDP planned by the Government against 5.9% of  GDP forecasted for 2016, and bringing the debt burden down in the  medium-term perspective.  

Eurasian Development Bank (EDB) is an international financial  institution founded by Russia and Kazakhstan in January 2006 with the  mission to facilitate the development of market economies,  sustainable economic growth, and the expansion of mutual trade and  other economic ties in its member states. EDB's charter capital  totals US $7 billion. The member states of the Bank are the Republic  of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the  Kyrgyz Republic, the Russian Federation, and the Republic of  Tajikistan.  

The Eurasian Fund for Stabilisation and Development (EFSD) amounting  to US $8.513 billion was formed on 9 June 2009 by the governments of  the six countries. The objectives of the EFSD are to assist its  member countries in overcoming the consequences of the global  financial crisis, ensure their economic and financial stability, and  foster integration processes in the region. The EFSD member countries  signed the Fund Management Agreement with EDB giving it the role of  the EFSD Resources Manager.


News
Economy Ministry announces launch of program to assist textile  industry in ArmeniaEconomy Ministry announces launch of program to assist textile  industry in Armenia
Government is preparing programs to support domestic producers in  view of lifting of embargo on Turkish importsGovernment is preparing programs to support domestic producers in  view of lifting of embargo on Turkish imports
Armenian NPP and Rusatom Overseas to sign Memorandum of UnderstandingArmenian NPP and Rusatom Overseas to sign Memorandum of Understanding
Vahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperationVahagn Khachatryan to head Armenian-Bulgarian intergovernmental  commission on economic and scientific-technical cooperation
Minister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with LithuaniaMinister of Health of Armenia will head intergovernmental commission  on trade and economic cooperation with Lithuania
Ministry of Economy: Armenia intends to reach 7% economic growth in  2022Ministry of Economy: Armenia intends to reach 7% economic growth in  2022
Labor productivity in Armenia is lower than EAEU averageLabor productivity in Armenia is lower than EAEU average
Acba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple WatchAcba Bank Brings Apple Pay to Customers. A safer, more secure and private way to pay with iPhone and Apple Watch
By the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central BankBy the end of 2022, inflation in Armenia will decrease to 4 +/-1.5%:  Candidate for Deputy Governor of Central Bank
 Converse Bank Brings Apple Pay to Customers  A safer, more secure and private way to pay with iPhone and Apple Watch Converse Bank Brings Apple Pay to Customers A safer, more secure and private way to pay with iPhone and Apple Watch
Armenia`s premier chairs discussion of wine industry development  prospects  Armenia`s premier chairs discussion of wine industry development  prospects  
Ardshinbank Brings Apple Pay to CustomersArdshinbank Brings Apple Pay to Customers
Cash circulation to be restricted in Armenia from July 1, 2020Cash circulation to be restricted in Armenia from July 1, 2020
Environmental protection ARMENAL`s priorityEnvironmental protection ARMENAL`s priority
Armenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chairArmenia`s Minister of Economy appointed Armenian-Moldavan Economic Cooperation Commission co- chair
Armenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  CommissionArmenia`s minister of economy appointed co-chair of Armenian-Kazakh Economic Cooperation  Commission
Armenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  CommissionArmenia`s Minister of Economy appointed co-chair of Armenian-Kyrgyz Economic Cooperation  Commission
In 2021, the number of subvention programs in Armenia exceeded the  two-year figureIn 2021, the number of subvention programs in Armenia exceeded the  two-year figure
ANIF Fund will invest about USD 1.4 million in transport and cargo  transportation fieldANIF Fund will invest about USD 1.4 million in transport and cargo  transportation field
Food Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and PolandFood Safety Inspectorate of Armenia imposes restrictions on import of  number of goods from Kazakhstan, Russia, Czech Republic and Poland
Only 5.5% of the highway was built under North-South program in 12  yearsOnly 5.5% of the highway was built under North-South program in 12  years
President of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAEPresident of Armenia at meeting with Executive Director of Mubadala  noted Armenia`s interest in investments from  UAE
The influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDIThe influx of foreign investment in the Armenian economy grew by  October 2021 due to a jump in FDI
EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%EDB analysts presented the first in this year macroeconomic review:  Economic activity in Armenia increased by 5.2%
Armenian president`s visit results: Wizz Air Abu Dhabi to start  flights to YerevanArmenian president`s visit results: Wizz Air Abu Dhabi to start  flights to Yerevan
Armenia`s president meets with Masdar company CEOArmenia`s president meets with Masdar company CEO
The price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and InfrastructuresThe price of gas at the border in 2022 was regulated by an additional  agreement to the contract of 2013 - Ministry of Territorial  Administration and Infrastructures
Vahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian sideVahan Kerobyan will head Armenian-Belarusian intergovernmental  commission on economic cooperation from Armenian side
Fly Arna, Armenia s national airline plans to launch air flights at  the end of MayFly Arna, Armenia s national airline plans to launch air flights at  the end of May
Gnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian sideGnel Sanosyan to head the Armenian-Turkmen intergovernmental  commission on economic cooperation from the Armenian side
Pashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirsPashinyan formed working group for effective implementation of work  on construction program of small- medium reservoirs
Export of goods up to one million drams in Armenia will be exempt  from customs dutiesExport of goods up to one million drams in Armenia will be exempt  from customs duties
Armenia`s government grants loan to Armenian NPP Armenia`s government grants loan to Armenian NPP 
FLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flightsFLYONE ARMENIA launches Yerevan-Istanbul-Yerevan flights
Armenian government to increase funding for subvention programs in  border communitiesArmenian government to increase funding for subvention programs in  border communities
Armavir leader in land purchase-and-sale deals Armavir leader in land purchase-and-sale deals 
2-fold YoY increase in real estate business in Yerevan 2-fold YoY increase in real estate business in Yerevan 
Results of the review of regulatory framework for advancing “green finance” in Armenia presented to stakeholdersResults of the review of regulatory framework for advancing “green finance” in Armenia presented to stakeholders
Armenian banks` client base up by 3.8% by Nov. 2021 Armenian banks` client base up by 3.8% by Nov. 2021 
9.7% year-on-year rise in housing prices in Armenia`s regions by Dec.  2021 9.7% year-on-year rise in housing prices in Armenia`s regions by Dec.  2021 
WB GDP growth forecast unchanged for Armenia WB GDP growth forecast unchanged for Armenia 
Armenian government minimizes contacts between tax authority and  taxpayerArmenian government minimizes contacts between tax authority and  taxpayer
33 587 children were born in Armenia in 11 months33 587 children were born in Armenia in 11 months
Wheat importers used bankruptcy as a tax evasion: SRCWheat importers used bankruptcy as a tax evasion: SRC
Issue of introducing universal income declaration system for  individuals was discussed at meeting chaired by Nikol Pashinyan Issue of introducing universal income declaration system for  individuals was discussed at meeting chaired by Nikol Pashinyan 
Service sector of Armenia reached 7.3% growth by December 2021Service sector of Armenia reached 7.3% growth by December 2021
Trade sector in January-November increased turnover by 7.9% per annumTrade sector in January-November increased turnover by 7.9% per annum
Telecommunications revenue of Armenia increased by 4.5% in 11 monthsTelecommunications revenue of Armenia increased by 4.5% in 11 months
Air passenger traffic increased 2.7fold over 11 monthsAir passenger traffic increased 2.7fold over 11 months
Armenian textile industry continues to demonstrate progressive growth  ratesArmenian textile industry continues to demonstrate progressive growth  rates
Alcohol industry in Armenia has increased production volumesAlcohol industry in Armenia has increased production volumes
Armenia`s metallurgical industry accelerates y-o-y growth rate to  double digitsArmenia`s metallurgical industry accelerates y-o-y growth rate to  double digits
Electricity generation in Armenia decreased by 2% in 11 monthsElectricity generation in Armenia decreased by 2% in 11 months
NA Committee approved nomination of Hovhannes Khachatryan for post of  Deputy Chairman of Central Bank of Armenia NA Committee approved nomination of Hovhannes Khachatryan for post of  Deputy Chairman of Central Bank of Armenia 
Russia leads both in export and import in Armenia`s foreign trade  turnoverRussia leads both in export and import in Armenia`s foreign trade  turnover
Manufacturing industry in Armenia has grown in 11 monthsManufacturing industry in Armenia has grown in 11 months
Economic activity up by 5.2% in Armenia in Jan-Nov 2021Economic activity up by 5.2% in Armenia in Jan-Nov 2021
Turkish Pegasus Airline to carry out Yrevan-Istanbul-Yerevan flightsTurkish Pegasus Airline to carry out Yrevan-Istanbul-Yerevan flights
Construction of alternative roads to be fully completed in Syunik in  2022Construction of alternative roads to be fully completed in Syunik in  2022
Inflation in Armenia in 2021 rises to 7.7% from 3.7% in 2020Inflation in Armenia in 2021 rises to 7.7% from 3.7% in 2020
Read more


Exchange rates
18.01.2022
RUB6.28-0.02
USD481.520.03
EUR548.74-1.27
GBP656.02-2.61
CAD384.48-0.34
JPY42.00-0.06
CNY75.800.09
CHF526.42-0.78