In 6 months of 2015, Central Bank`s equity dropped by 15.2%, as loss increased and negative revaluation reserve sagged tangibly

 

The source says that in the first half of 2015 the share of accumulated loss in the CBA's equity grew by 2.2% to 132.3 bln AMD ($280mln), and for Q2 alone - it fell by 1.8%. The negative indicator of the revaluation reserve of the assets subject to sale increased almost threefold to negative 1.1  bln AMD ($2.4 mln), and by 19.3% in Q2 alone.  The additional capital remained at 136.2 bln AMD ($288.2 mln). As compared to the first half of 2014, the CBA's equity increased almost 4-fold (up from the negative level to a positive one), the accumulated loss dropped by 16.7%, the revaluation reserve of the assets subject to sale sagged more than 3-fold (down from the positive level to a negative one), and the additional capital increased by 6.2%. The main reserve and the issued capital remained unchanged - 17.4 bln AMD and 100 mln AMD, respectively. The additional authorized capital changes were as follows: in 2011 it was increased from 85.7 bln to 107.5 bln AMD due to the government non-negotiable non-interest bearing note; in 2012 it underwent no changes; in 2013 and 2014 it was increased in the same way to 128.2 bln AMD and then to 136.2 bln AMD.  

 

Thanks to the government note, the CBA's equity rose from the negative level to a positive one in early 2012 and remained at the positive level till 1 October 2012. Another rise to the positive level was registered in the equity in Q4 2014, with further reduction in 2015 because of the growing loss. In the first half of 2015, the CBA's total assets fell by 1.3% (versus 15.9% decline in the first half of 2014) to $2.852 bln or 1.348 trillion AMD, including 58.7% or 791.5 bln AMD ($1.7 bln) forex assets and 41.3% or 556 bln AMD ($1.2 bln) AMD assets. In the first half of 2015, the forex assets increased by 2.7% (versus 19.2% drop in the first half of 2014), with the AMD assets diminishing by 6.4% (versus 8.9% drop in the first half of 2014). As compared to the first half of 2014, the CBA's assets increased by 13.3% as the AMD component grew by 37.5%, amid the 0.9% growth in the forex component. In the structure of forex 

assets, quarterly decline was registered in all components, except the funds in the banks and other financial organizations (down 30.5% to 183 bln AMD) and government bonds saved until the repayment date (down 4.9% to 76.7 bln drams).  The share of the financial instruments calculated by their real value is the largest in the forex assets. These instruments grew by 32.7% to 452 bln drams in Q2 alone. In the structure of AMD assets, a quarterly decline was registered in all components, the funds placed with banks and other financial organizations fell by 11/5% to 262.3 bln drams.

 

In the first half of 2015, the CBA's general obligations fell by 1% (versus 15.8% decline in the first half of 2014) to 1.325 trillion AMD ($2.809 bln), including 34.1% or 452.4 bln AMD ($957.5 mln) forex liabilities and 65.9% or 874.8 bln AMD ($1.9 bln) AMD liabilities. As compared to the first half of 2014, the AMD liabilities were up 1.1% (down 13.1% in 1st half of 2014), and the forex liabilities fell by 4.9% (down 19.8% in the first of 2014). As compared to the first half of 2014, the CBA's general obligations were up 10.5% due to the AMD component growth by 17% amid the 0.3% fall in the forex component. In the structure of forex liabilities, payables to the IMF, the current accounts and deposits of financial organizations, other borrowings grew by 0.3%, 12.6%, and 2%, respectively. In the structure of the 

AMD liabilities, the banknotes and coins in circulation experienced an 8.4% growth, while the deposits and accounts of financial organizations and the payables to the Government fell 3% and 19,6%, respectively. 

 

According to the CBA, as of 1 Jan 2015, the accumulated loss totaled 129.4 bln AMD, the total capital amounted to positive 23.9 bln AMD, assets - 1.4 trillion AMD (including 770.9 bln AMD forex assets and 

594 bln AMD in terms of Armenian dram), general obligations - 1.3 trillion AMD (with forex liabilities being 475.9 bln AMD and AMD liabilities being 865.2 bln AMD). To note, on 31 July 2014, the Armenian Government took a decision to issue a non- negotiable non-interest bearing note worth 106.2 bln AMD to cover the CBA's loss accumulated as of late 2013. This note will replace the previous issue worth 98.2 bln AMD (September 2013), which was to cover the CBA's loss at the yearend of 2012. To recall, in August 2011 the Finance Ministry provided the CBA with a government note worth 77.5 bln AMD to cover the loss accumulated as of late 2010.