Interfax News Agency, Russia
April 4 2008

Armenia plans limits on cash transactions beginning in 2009

YEREVAN April 4

The Armenian government on Friday approved a draft bill that sets
limits on the size of cash transactions, National Bank board member
Vache Gabrielyan said at a briefing.

The measure targets transactions in the unofficial, "shadow" economy.

It would require all transactions on purchase or use of goods in
excess of 3 million drams (about $10,000) to be transacted on a
non-cash basis effective from January 1, 2009. The threshold would
drop to 2 million drams in 2010 and to 1 million dram in 2011.

The bill would require that all monthly salaries above 60,000 drams
($200) be paid through bank accounts (cards). Non-cash payment of
salaries would be implemented among state employees first of all and
in the private sector later.

Similar restrictions apply to pension payments, tuitions and medical
services.

Gabrielyan declined to speculate on the volumes of cash transactions
that would be affected because "operations in cash as a rule are
unregulated in nature."

After approval by the government the bill will go to parliament.