Contribution of the Eurasian Development Bank to the Armenian economy
The Eurasian Development Bank (EDB) aims to increase its share in the investment portfolio of Armenia to 15%. This is stated in the bank's development strategy for 2022-26.
Within five years, the bank intends to increase the volume of projects in the participating countries by 2.7 times, bringing it to $ 10.9 billion. At the same time, the total amount of investments in Armenia, Kyrgyzstan and Tajikistan will reach $ 500 million, or four times more than in 2020. At the end of 2020, the decline in the GDP growth rate of the Bank's member countries is estimated at 2.9%, the budget deficit at 1-6% of GDP.
In Armenia, financing is planned to be carried out mainly in euros and dollars, but the bank is ready to issue loans in national currency. To this end, the EDB will accumulate reserves in national currencies, wishing to bring their volume to 35% of its total liabilities by 2026.
Macroeconomic forecast allows counting on strengthening the influence of positive factors in the Armenian economy.
It should be noted that since 2009 Armenia has been a full member of the Eurasian Development Bank. The republic's contribution to the Bank's capital is 100 thousand US dollars.
The EDB intends to become the main participant in the financing of three large investment projects. About $ 1.2 billion will be allocated for this. One of these projects is related to the expansion of the road and rail corridor "Europe ― Western China", which will reduce the transit time of goods for Armenia as well. Another project is a unified infrastructure for the transfer of goods to the countries of the Eurasian Bank, the third is an increase in hydropower capacities.
Along with this, on August 24, information was received about the increase by the International Monetary Fund of the reserves of the participating countries, including Armenia, as an aid to the restoration of the world economy after the coronavirus. The new reserves are planned to be used to obtain convertible currency at an extremely low interest rate.
For the Armenian economy, the investments of the Eurasian Development Bank are of significant importance, taking into account the republic's interest in strengthening cooperation with the EAEU countries. Today, the Eurasian continent is becoming the flagship of regional integration - integration focused primarily on the interests of the countries of Greater Eurasia themselves. Ensuring not competition, but synergy of Eurasian projects meets the interests of all the powers of the continent.