MANILA, PHILIPPINES (5 November 2024) — The Asian Development Bank (ADB) has approved an €89.47 million ($100 million equivalent) policy-based loan as Subprogram 2 of Armenia’s Fiscal Sustainability and Financial Markets Development Program.  

The reforms promoted under this programmatic approach, supported by ADB in partnership with Agence Française de Développement, strengthen Armenia’s fiscal management and deepen its financial markets. These reforms align with Armenia’s national strategy to enhance governance, promote economic stability, and accelerate climate action.

Government reforms under Subprogram 2 promote critical objectives of fiscal reform, including improved multi-year budget planning and procurement governance, and strengthened public debt, fiscal risk, and public investment management. In addition to fiscal governance reforms, the program also supports the establishment of liquid money markets, facilitates greater investor confidence, and enhances corporate transparency and governance.  

Armenia’s climate change action policy commitments will also be enabled by key program reform efforts to embed adaptation and mitigation concerns and environmental policy objectives in public financial management systems and in financial sector policy.

“The reforms will stimulate the financial sector and access to finance, positioning Armenia as a more robust economy resilient to external risks,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.  

Subprogram 2 builds on the successful implementation of Subprogram 1 and aims to reduce fiscal vulnerabilities and bolster investor confidence in its financial and capital markets.

“This program is a vital step in promoting fiscal effectiveness and bolstering Armenia's capacity to manage fiscal risks and public investments effectively, creating foundations for sustainable growth,” said ADB Principal Financial Sector Economist João Farinha-Fernandes.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.