Armenia Government to reduce funds allocated to Central Bank

YEREVAN, DECEMBER 23, ARMENPRESS. The Government of the Republic of Armenia intends to reduce the amount of non-interest bearing demand government ordinary promissory note provided to the Central Bank of Armenia. “Armenpress” reports that the draft decision related to the aforementioned is included in the Government’s December 24 agenda. According to December 31, 2014 decision, the Government granted a non-interest bearing demand government ordinary promissory notes of 106 billion 175 million 637 thousand AMD, and according to the coming decision, the Executive Branch will replace that sum with 81 billion 275 million 373 thousand AMD.

“The adoption of the draft proceeds from the requirements of Article 11 provisions of the Law of the Republic of Armenia on the Central Bank of Armenia, according to which, in the event if, by the end of the financial year, the losses resulted in the Central Bank balance sheet exceed the aggregate amount of its reserves, the Government, shall, as stated by law, grant non-interest bearing demand government ordinary promissory notes as a contribution to the Central Bank capital in an amount of exceeding sum,” is said in the law substantiation.