Tackling insolvency to improve the investment climate in Armenia Generating momentum for commercial mediation in Eastern Europe

Tackling insolvency to improve the investment climate in Armenia

Drawing on its expertise and experience in other countries, in 2020 IDLO finalized a review of Armenia’s Insolvency Court, which was established in 2018 to help create a more transparent, stable and efficient legal framework for businesses and a more attractive investment climate in the country. IDLO worked with the Supreme Judicial Council of Armenia to identify major risks and inefficiencies and develop an action plan with recommendations to maximize the performance of the Insolvency Court, including by introducing the e-filing of cases, standardizing forms and guidelines, and improving internal exchange of knowledge and best practice. The proposed changes are expected to reduce delays in finalizing insolvency proceedings, and lead to a more transparent and unbiased handling of cases.

IDLO also developed training courses on the country’s insolvency law for newly appointed judges to the Insolvency Court, adapting the training modules to an online platform in light of COVID-19 restrictions, ready to roll out in early 2021.

These efforts have paid off: gross domestic product grew by 7.6 percent in 2019, Armenia has risen six ranks in the Doing Business rating in two years since 2017, and jumped 45 places in the Transparency International Corruption Perception Index from 105th place in 2018 to 60th in 2020. Yet despite the positive trend, local businesses and foreign investors still face a range of challenges, including in the area of insolvency.

7.6% Gross domestic product grew by 7.6 percent in 2019

+45 Armenia jumped 45 places in the Transparency International Corruption Perception Index from 2018 to 2020

© IDLO