Armenian economist calls for debt amnesty, sweeping economic overhaul

Armenian economist and former MP Mikayel Melkumyan has called for a sweeping overhaul of the country’s economic and industrial policy, unveiling a 10‑point plan that includes debt amnesty for small borrowers, tax cuts and free higher education.

Speaking at a roundtable organized under the “Proposal to Armenia” initiative on Saturday, Melkumyan said Armenia faces “a crisis across nearly all spheres of public, economic and social life”, compounded by external and internal challenges. He argued that bold reforms are needed to stabilize the economy and support households.

Among the most striking proposals was a call to declare amnesty on penalties and fines for citizens holding loans of up to 3 million drams, a measure aimed at easing the burden on low‑income borrowers. Other recommendations included:

1. Establishing 10 tax‑free industrial zones across Armenia’s regions.

2. Launching a “one‑stop shop” investment support program.

3. Raising the minimum wage from 75,000 drams to 120,000 drams within two years.

4. Indexing pensions and wages ahead of inflation, with a minimum pension set at 82,000 drams.

5. Cutting turnover tax for small and medium businesses to 1%.

6. Reducing gas and electricity tariffs by 10%.

7. Halving property tax rates by 2026.

8. Supporting farmers through pre‑harvest contracts and state‑backed storage facilities

9. Making higher education free of charge.