Scope of the Project
Public Debt and Fiscal Risk Management Strengthened:
Development and implementation of robust public debt policies and fiscal risk frameworks enhanced the government’s capacity to manage liabilities and mitigate macroeconomic vulnerabilities.Government Securities Market Deepened:
Improvements in the design, issuance, and management of government securities contributed to a more liquid and efficient domestic debt market.Financial Market Infrastructure Improved:
Enhancements in regulatory frameworks, trading platforms, and settlement systems supported the overall stability and functionality of Armenia’s financial markets.Investor Base Broadened and Corporate Transparency Enhanced:
Reforms aimed at improving financial disclosure and governance practices facilitated increased participation from institutional investors and strengthened market confidence.
Short info on the Project
This project was implemented for the Asian Development Bank, with the Ministry of Economy of Armenia serving as the primary beneficiary.
As part of the engagement, the Consultant provided technical and policy advisory services aimed at stimulating activity in Armenia’s capital markets. This included an in-depth review of the regulatory environment administered by the Central Bank of Armenia, with a particular focus on Regulation 2, which governs prudential treatment of various financial instruments.
A detailed risk-weight analysis of asset classes was conducted, leading to recommendations for adjusting the risk weights assigned to corporate bonds and loans. These adjustments aimed to improve the attractiveness of these instruments for financial institutions and investors, while ensuring prudent risk management.
In addition, the Consultant reviewed the Program on State Assistance to Bond Issuance and Rating, providing targeted recommendations to enhance its effectiveness in promoting the issuance of rated corporate securities and improving overall market depth and transparency.
