Republic of Armenia: Technical Assistance Report-Strengthening State-Owned Enterprises Accountability Framework

Technical Assistance Reports, March 27, 2024

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Canonical URL: Republic of Armenia: Technical Assistance Report-Strengthening State-Owned Enterprises Accountability Framework

Over the past decades the Republic of Armenia has implemented significant reforms to reduce the state footprint in their economy and to improve the performance of the State Owned Enterprises (SOEs) where the Government intends to retain ownership.
The Government has taken concrete steps focusing on improving the financial transparency and fiscal viability of SOEs.
The report discusses how the Government can further strengthen:
- SOE financial accountability,
- SOE transparency and oversight,
- SOE corporate governance,

in line with good international practices.

The report emphasizes that these measures should be combined with further efforts in reducing the number of SOEs, focusing on those that do not align with the Government strategic priorities and the state ownership policy.

Strengthen SOE financial accountability mechanisms.
Improve transparency and fiscal reporting for SOEs to better capture fiscal risks.
Enhance oversight arrangements to align with good international practices.
Reinforce corporate governance frameworks across the SOE portfolio.
Pursue further reduction in the number of SOEs, prioritizing divestment or restructuring of entities that do not align with Government strategic priorities and the state ownership policy.