RESEARCH ON REGULATORY REGIME IN MICROFINANCE: THE ARMENIA EXPERIENCE

Abstract

The history of microfinance in Armenia can be traced back to early 1990s when the newly independent nation was struggling with the economic consequences of the disintegration of the Soviet Union, the devastating 1988 earthquake and the blockade resulting from the Nagorno Karabagh conflict. The rupture of economic ties and the emergence of borders in the post-Soviet space led to a massive economic recession and, consequently, a sharp decline in the population living standards. The transition turned out to be particularly painful for Armenia which did not have its own fuel and energy resources and, as a landlocked country, depended heavily on highways, railroads and pipelines through the territory of the neighboring countries.