ArmInfo.On May 14, Deputy Prime Minister Mher Grigoryan and Babken Tunyan, Deputy Chairman of the National Assembly's Standing Committee on Economic Affairs, met with the Board of Directors and the executive team of the American Chamber of Commerce (AmCham) in Armenia. The meeting, held at the Government House, focused on the draft law of the Republic of Armenia "On Investments," which recently passed its first reading in the National Assembly.
During the discussion, participants emphasized the importance of increasing high-quality investment inflows and enhancing Armenia's investment climate. The Deputy Prime Minister highlighted that engaging the business community in such formats is vital for shaping national reforms and developing new economic incentives.
Recall, Armenia's parliament recently adopted the draft law "On Investments" in its first reading. The adoption of the bill will create a clear and predictable legal environment for investment, enabling Armenia to enhance its international investment rating and competitiveness, investment attractiveness, as well as contribute to sustainable and inclusive economic growth. Thus, the draft law defines investment guarantees and investor protection in accordance with modern internationally recognized standards. Specifically, the draft defines non-discrimination guarantees with its two well-known components: national treatment (NT) and most favored nation (MFN) treatment; and a guarantee of protection against expropriation. Moreover, it defines the concept of indirect expropriation, which is clearly prohibited, and also specifies the criteria under which direct expropriation can take place. The provisions of this guarantee, taking into account the specifics of financial markets/organizations, also propose for the first time to establish that the regime for the nationalization of financial organizations within the framework of rehabilitation procedures is determined by law; guarantees of legal and physical protection, transparency, and stability of the legal framework for investments. In this regard, for instance, the draft provides that investments enjoying guarantees established by law will continue to be protected by guarantees established by law, regardless of changes in the scope of guarantees or their cancellation, for a period of five years after such change or cancellation; guarantees such as free movement and transfer of capital and property, property rights and other property rights to land, guarantees for the employment of workers, dispute resolution mechanisms, etc.; types of investment incentives (benefits), their purpose, essence, legal basis and mechanisms of application; the draft law also defines the institutional framework for investment activities: the powers of the Government of the Republic of Armenia in this area (the necessary enabling regulations), the powers of the authorized body, and also lays the foundations for the legal status of the Investment Promotion Center.
