EBRD notes Armenian government’s steps in economic sphere
15.11.2011,
23:54
n “Crisis and Transition: The People’s Perspective” report the European Bank for Reconstruction and Development (EBRD) noted the steps of the Government of Armenia in the economic sphere over the past year.
YEREVAN, 15 November. / ARKA /. In “Crisis and Transition: The People’s Perspective” report the European Bank for Reconstruction and Development (EBRD) noted the steps of the Government of Armenia in the economic sphere over the past year.
The report says that the post-crisis recovery has been slow. Exports and remittances have helped to stabilise output and the agricultural sector is recovering from last year’s drought while the construction sector remains depressed. Food prices surged, bringing overall inflation into double digits in early 2011, but have declined recently due to the rebound in agriculture and favourable base effects.
‘The authorities have embarked on an ambitious deregulation programme. Various measures have been introduced, including a reduction in the required number of licences and the establishment of “one-stop shops” for business registration, the use of risk-based oversight systems, and the “regulatory guillotine” initiative aimed at eliminating excessive regulation,’ it says.
According to it, the Central Bank has pursued policies to contain dollarisation. These include changes in the denomination of foreign currency reserve requirements and risk weights for foreign currency assets in the capital adequacy calculation and increased exchange rate flexibility.
The report says further improvement of the business environment is a top priority. It is important to strengthen competition, to consistently apply the recently adopted legislation on conflicts of interest in the public sector and further professionalise the tax administration. The expected approval of a new mining code consistent with international best practices should help attract further investment in this sector.
The report says the internal transportation and communications infrastructure needs to be upgraded. Given the country’s land-locked status, it is important to reduce internal and international transport costs, including those of air travel, by liberalising access of international airlines to the local market.
More action should be taken to further develop local capital markets and reduce dollarisation. The authorities should finance a greater share of public debt domestically and ensure that financial regulations continue to support the development of local currency lending. -0-
The report says that the post-crisis recovery has been slow. Exports and remittances have helped to stabilise output and the agricultural sector is recovering from last year’s drought while the construction sector remains depressed. Food prices surged, bringing overall inflation into double digits in early 2011, but have declined recently due to the rebound in agriculture and favourable base effects.
‘The authorities have embarked on an ambitious deregulation programme. Various measures have been introduced, including a reduction in the required number of licences and the establishment of “one-stop shops” for business registration, the use of risk-based oversight systems, and the “regulatory guillotine” initiative aimed at eliminating excessive regulation,’ it says.
According to it, the Central Bank has pursued policies to contain dollarisation. These include changes in the denomination of foreign currency reserve requirements and risk weights for foreign currency assets in the capital adequacy calculation and increased exchange rate flexibility.
The report says further improvement of the business environment is a top priority. It is important to strengthen competition, to consistently apply the recently adopted legislation on conflicts of interest in the public sector and further professionalise the tax administration. The expected approval of a new mining code consistent with international best practices should help attract further investment in this sector.
The report says the internal transportation and communications infrastructure needs to be upgraded. Given the country’s land-locked status, it is important to reduce internal and international transport costs, including those of air travel, by liberalising access of international airlines to the local market.
More action should be taken to further develop local capital markets and reduce dollarisation. The authorities should finance a greater share of public debt domestically and ensure that financial regulations continue to support the development of local currency lending. -0-
