YEREVAN, August 18. / ARKA /. The Armenian government passed Thursday a decision to replace an interest free promissory note of 55.6 billion drams issued previously to the Central Bank with a bearer promissory note of 77.5 billion drams.
Finance minister Vatche Gabrielian told during a Cabinet session that the decision was made taking into account the fact that under the law the Armenian government covers the losses of the Central Bank by the promissory note.
“We are updating these amounts based on the results of the fiscal year of the Central Bank”, he said, adding that the current increase was prompted by fluctuating exchange rate of the national currency over the past year.
In accordance with the law of Armenia “On the Central Bank”, if losses of the Central Bank during a year exceed the volume of its reserves the government has 30 days after publication of the balance of the Central Bank to offer government bonds as investments in Central Bank capital.
On August 12, 2010 the government decided to replace an ordinary interest-free promissory note of 79.6 billion drams, issued earlier to the Central Bank, with an another promissory note in the amount of 79.6 billion drams. ($ 1 – 367.09 AMD).—0–
