ArmInfo. The Central Bank of Armenia will use 80% of annual profits to repay a simple interest-free government demand bill in the amount of 54.395 billion drams. The decision on this was made at a cabinet meeting on July 18.
As noted in the rationale for the draft decision, given the fact that the Central Bank ended 2021 with a loss significantly exceeding reserves, the amount of interest-free government bill of 54.395 billion drams provided to cover this gap was replaced by the amount
204.072 billion drams. Further, taking into account that the consolidated profit of the Central Bank of the Republic of Armenia at the end of 2023 amounted to 52.043 billion drams, based on Article 12 of the RA Law "On the Central Bank", it became necessary to allocate 80% of this profit (41.635 billion drams) to repay part of the interest-free government bill, taken into account in the capital of the Central Bank of the Republic of Armenia.
Taking into account the above, the draft government decision proposes to change the amount of the interest-free government demand bill provided to the Central Bank in the amount of 204.072 billion drams (decision dated July 6, 2023) to the amount of 162.437 billion drams (July 18, 2024).
According to the Central Bank of the Republic of Armenia, pre-tax profit at the end of 2023 amounted to 54.994 billion drams, and net profit - 52.609 billion drams, against minus 146.491 drams and 148.843 billion drams at the end of 2022, respectively. This allowed the Central Bank to reduce the accumulated loss for 2023 from 245.371 billion to 203.736 billion drams. In addition, the government's increase in the size of interest-free government bills from 54.395 billion in 2022 to 162.437 billion drams in 2023 allowed the Central Bank of Armenia to withdraw its own capital from negative 148.074 billion drams to positive 13.876 billion drams.
