IMF Resident Representative in Armenia identifies main obstacles to improving the country's business environment
YEREVAN, December 24. /ARKA/. The IMF has observed important improvements in Armenia's business environment over the past few years, but obstacles remain, said Umang Rawat, IMF Resident Representative in Armenia, in an interview with ARKA.
"For example, the private sector remains constrained by a complex legal framework and a lack of digital government services," he said.
Furthermore, according to Rawat, weak property and contractual rights, as well as persistent governance issues, continue to hinder investment, while harmonization with international product quality standards to promote exports lags.
"Furthermore, the shadow economy remains significant, making it difficult for formal businesses to compete. Finally, human capital shortages and skills mismatches are also a concern," he emphasized.
The IMF Resident Representative in Armenia is convinced that addressing these obstacles is crucial to stimulating the development and growth of private businesses and modernizing the economy to support higher, sustainable growth.
"The government is well aware of these challenges and has developed strategies to increase labor force participation and employment, as well as support export diversification. Furthermore, a new corporate governance code was adopted in 2024, and amendments to the insolvency legislation were recently introduced in parliament to enhance corporate transparency, strengthen creditor rights, and improve the overall business environment. These efforts must be continued and consistently implemented," he said.
Rawat also noted the country's efforts to improve national statistics.
"We agree that measuring the state of the economy and the impact of reforms requires high-quality, reliable, and timely statistics. These are essential to support both public and private policy decisions. Therefore, we have agreed with the authorities to include national statistics among the priority areas under the new IMF program," he said.
On December 4, 2025, the IMF approved a new 36-month Stand-By Arrangement (SBA) agreement with Armenia in the amount of 128.8 million SDRs (100% of Armenia's quota in the IMF, or about $175 million), which will assist the country's authorities in maintaining macroeconomic stability and advancing the program of structural reforms, as well as provide insurance in the face of uncertainty.After the approval of Armenia, an amount equivalent to 18.4 million SDR (about $25 million) immediately became available. The remaining amount will be provided in equal tranches taking into account six semi-annual reviews.-0-
