Armenia: The heart of the Southern Caucasus
As a young state which recently regained independence in 1991, Armenia is going through the profound restructuring of its economic base, important public administration reforms and building of an active civil society. Since the formal beginning of bilateral financial cooperation in 1998, Armenia has been supported in these efforts by KfW primarily on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) with low interest rates, loans and grants totaling almost one billion Euros so far.
One of Armenia's key resources is water. It is used for drinking and irrigation purposes, serves as a source of renewable energy production and fish production for local markets and exporting. Due to insufficient control over the use of water, the country is running the risk of depleting these water resources. Therefore KfW supports Armenia in the establishment of integrated water resource management techniques to fight water losses, illegal water abstraction, excessive and inefficient use of irrigation water. Other priority areas supported by KfW are sustainable energy (an integrated regional electricity network between Georgia – Armenia – Iran as well as renewable energy and energy efficiency measures), the expansion of the financial sector (housing mortgage, SME development, agro-financing) and nature conservation (establishment of national parks, support to protected areas).