ARMENIAN CENTRAL BANK TO REGULATE PROBLEMS WITH DEBT MANAGEMENT AT LEGISLATIVE LEVEL
ArmInfo
2009-04-30 15:56:00
Arminfo. Armenian Central Bank is going to regulate problems with
debt management at legislative level, chairman of Central Bank [CB]
Artur Javadyan said in the parliament today when submitting in the
first reading the draft law ‘On alterations to the law ‘Central Bank’
Javadyan said that debt management of CB is implemented to support
the payment balance and ensure financial stability. This point
is also stemming from the law ‘Om state debt’, according to which
debt management is implemented on the basis of the law ‘On Central
Bank’. Javadyan emphasized that foreign debts and guarantees on local
debts are the state debts. Gross foreign debt of the Republic of
Armenia consists of the debts of government, Central Bank and private
residents. Resolving of the problem of internal debt towards residents
on behalf of Armenia is implemented on the basis of compensation of
contracts on attraction of the credit funds. Debts of the government
are: government bonds, foreign borrowings, fund allocations, given
by commercial banks to the government, and internal guarantees. Debt
of Central Bank is formed to provide the payment balance, to support
financial and macro-economical stability. Central Bank has a right
to issue short-term bonds with term up to 1 year. The IMF funds
will be attracted to support the payment balance. The IMF is going
to allocate $540 mln to Armenia. As of today, $240 mln have been
already allocated. The rest will be given via separate tranches
over 28 months. These funds are directed to replenishment of external
reserves. Moreover, Central Bank also has a right to get other external
obligations, for instance, attraction of credit funds of the German
KfW bank, which are about 30 mln EUR as well as the World Bank,
which has already given $50 mln to Armenia for development of small
and medium-sized business.