The global economic and financial crisis in 2008 adversely affected the financial sector of Armenia; however, it has largely recovered and the banking sector has stabilized. Financial intermediation has deepened since 2009 due to the efforts of the Central Bank with support from IMF and USAID. Yet, Armenian banks offer a limited range of products and services for businesses, and SME access is constrained due to tightened lending criteria and is focused on existing clients and larger corporations.
USAID assistance in the financial sector is targeted at removing these impediments and fostering the development of the financial market. Current and future efforts also aim to facilitate access to credit for small- and medium-sized enterprises and to improve tax policy and administration.
The Tax Reform Project (TRP) improves business competitiveness in Armenia through targeted interventions aimed at reducing tax compliance burden for individuals and businesses. The project assists the State Revenue Committee (SRC) and Ministry of Finance to improve revenue policy formulation, tax administration policies and procedures and their implementation, and strengthens SRC’s human and institutional capacity to provide enhanced and more efficient taxpayer services.
The Finance for Economic Development (FED) project promotes efficiency and capacity of Armenian financial institutions to advance enterprise development in rural and urban areas. The project also assists in policy and regulatory reforms to improve the soundness, safety, and stability of the financial system, enhance opportunities for innovation and research, and increase access to credit for small to medium enterprises. FED also promotes Armenia’s pension reform through strengthening the country’s capital markets.
Last updated: October 11, 2013