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 the building of an active civil society. Armenia’s economic and political development was recently heavily impacted by the COVID-19 pandemic and by the conflict with Azerbaijan over the disputed region of Nagorno-Karabakh. Since the formal beginning of bilateral Financial Cooperation in 1998, Armenia has been supported in these efforts by KfW, primarily on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), with low interest rates, loans and grants totalling almost EUR 1 billion 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 and is used in fish farming. At the same time, water is a scarce resource in the arid mountain area – half of the nation’s territory is over 1800 metres above sea level. Due to insufficient control over the use of water, the country is running the risk of depleting these water resources. Therefore KfW is supporting Armenia as it establishes integrated water resource management techniques to fight water losses, illegal water abstraction, and excessive and inefficient use of irrigation water. Other priority areas supported by the cooperation are sustainable energy (by establishing an integrated regional electricity network between Georgia, Armenia and Iran as well as promoting renewable energy and energy efficiency measures), expansion of the local financial sector (e.g. housing mortgages, SME promotion, agro-financing) and nature conservation (e.g. establishing national parks, supporting protected areas).
KfW Office Yerevan
Director Regional Office Caucasus: Dr. Klaus Veigel
Local Representative KfW: Zara Chatinyan
Vernisazh Business Center, 9th floor
Republic of Armenia
Phone: +374 10 510069