Tuesday, June 2 2020 14:01

ArmInfo. Transaction losses in  the acquisition of securities will be reduced in Armenia. The  National Assembly of Armenia at the sitting on June 3 in the first  reading adopted the amendments to the law "On Currency Regulation and  Currency Control" submitted by the NA lawmaker from the "My Step"  faction Artak Manukyan.

According to the lawmaker, at present, when acquiring  currency-denominated securities, and in particular bonds (state and  corporate), investors are not able to receive dividends from interest  payments in foreign currency.  Meanwhile, bank depositors have such  an opportunity, which is unfair to depositors in securities. Now it  is proposed to set the provision giving holders the right to receive  dividends in foreign currency. Artak Manukyan emphasized that bank  deposits are a form of obtaining passive income, which cannot be said  about securities, investments in which are a good opportunity for  profit-making transactions. The elimination of injustice will reduce  transaction costs for investors.

In his turn, Deputy Chairman of the Central Bank of the Republic of  Armenia Nerses Yeritsyan noted that it was initially envisaged that  dividends from securities should be paid in national currency -  drams, however, after this issue was resolved in relation to bank  deposits of individuals, injustice arose on the rest financial  instruments. And if deposits and loans are clear financial  instruments, then such instruments as corporate bonds are market  ones, and it is fair if, against investments in dollars, settlements  when receiving dividends from them were also made in dollars.   Nevertheless, the deputy chairman of the Central Bank again pointed  out the importance of the process of de- dollarization of the  country's economy. For this reason, one should be careful about  actions that may weaken the efforts of the regulator to de-dollarize  the country's economy. The more the market is focused on the national  currency, the less will be dependence on external shocks, "Yeritsyan   emphasized.