EDB to issue $2mln grant to Armenia to enhance public finance  management efficiency

ArmInfo. On February 6, the Government of Armenia approved the draft decree of the President of the Republic of Armenia <On approval of Supplementary Agreement No. 1 to the Agreement between the Republic of Armenia and the Eurasian Development Bank on providing a grant from the Eurasian Fund for Stabilization and Development to finance the project <Improving the quality of financial reporting of public sector organizations of the Republic of Armenia>.

As stated in the explanatory note to the document, the Agreement on  providing a grant in the amount of $2 million from the Eurasian Fund  for Stabilization and Development to finance the project <Improving  the quality of financial reporting of public sector organizations of  the Republic of Armenia> was signed on February 6, 2024 and entered  into force on August 2.

The purpose of the implementation of the program envisaged by the  agreement is to promote the improvement of the efficiency of public  finance management in the Republic of Armenia.

<With the grant funds of the Eurasian Fund for Stabilization and  Development, provided for by the agreement, it was planned to develop  a methodology and tools for consolidating the financial statements of  public sector organizations of the Republic of Armenia, develop  (purchase) the relevant software for preparing consolidated financial  statements of the Ministry of Health of the Republic of Armenia and  its subordinate SNCOs, as well as organize comprehensive training of  specialists in training specialists for these reports.

However, given the fact that in parallel with ensuring the procedures  for negotiations and the entry into force of the Agreement, the  Republic of Armenia has also begun implementing the Public Finance  Management Information System, an objective need has arisen to make  certain changes to the current agreement in order to ensure harmony  with the latter>, the document says. The changes and additions mainly  concern the procedures for conducting purchases and allocating funds.