ARMENIAN GOVERNMENT TO ISSUE GOVERNMENT BILLS TO ZERO THE LOSS OF CENTRAL BANK

ArmInfo
2009-09-23 15:50:00

ArmInfo. Armenian Government will issue government bills to zero
the accumulated loss of the Central Bank of Armenia (CBA) by the
end of 2009, CBA Chairman Artur Javadyan said at the sitting of the
government, Wednesday.

The basis for the given operation is the amendments and alterations
to the law on Central Bank approved by the government today. Javadyan
pointed out that the government will issue non-interest government
bills on demand to cover the loss of the CBA and replenish the
authorized capital. The volume of emission will be equal to the
difference between the reserve and loss of the CBA, the chief anker
said.

It is envisaged to issue the bills in December 2009 after the
parliament adopts legislative initiatives. The order of mortgage
security, yield accounting, redemption, protection of the bills and
their exchange for government bills will be determined by an agreement
between the CBA and the government.

To note, as of 1 July 2009, the accumulated loss of the CBA amounted
to $180,4 mln. The supplementary authorized capital amounted to $237.9
mln, main reserve – $27,4 mln, total capital – $81,5 mln.