Armenian government to reduce amount of non-interest treasury bills from 81.3 bln AMD to 73.8 bln AMD aimed at covering losses of Central Bank

ArmInfo. Armenian government has made a decision to reduce the amount of issued non-interest treasury bills from 81.275 bln AMD to 73.811 bln AMD aimed at covering the losses of the Central Bank. First Deputy Finance Minister Pavel Safrastyan made the proposal at the government's session on July 7. He noted that the reduction is determined by 9.331 bln AMD income received by the Central Bank in 2015, 80% of which were spent on paying off the treasury bill provided earlier by the government. 

According to the recent data accumulated losses of the Central Bank of Armenia at year-end 2015 totaled 156.1 bln AMD, versus accumulated losses of 129.4 bln AMD in 2014, 158 bln in 2013 and 146 bln in 2012. As of April 1 2016 the accumulated loss of the Central Bank increased to 161.1 bln AMD. As a result Central Bank's net worth reduced from 30.4 bln AMD in 2009 to negative 22.2 bln AMD in 2012. After this due to annual treasury bills of the government the burden of losses on capital reduced and negative capital declined to 11.3 bln AMD in 2013 and was positive in 2014-23.9 bln AMD, with reduction to positive 2.6 bln AMD in 2015. As of April 1 2016 the Central Bank's net worth reduced to negative 2.1 bln AMD due to increased accumulated loss. 

To recall, on December 24, the Armenian Government decreed reducing the Central Bank's debt from 106.2 bln AMD to 81.3 bln AMD.