By December 29, 2023 the obligations of the Nagorno Karabakh Government and the funds created by the latter, the legal and physical persons of Nagorno Karabakh subject to reconstruction towards the RA financial-banking system will be about315 billion AMD, and the service of its prevailing part has become impossible conditioned by the situation created around Nagorno Karabakh. The abovementioned leads to a number of negative risks, particularly, essential losses of the capital of the RA financial-banking system and disruption of financial stability: The RA Minister of Finance Vahe Hovhannisyan said at the NA extraordinary session convened on December 22.
The parliament debated and passed the draft law on Making Addenda to the law on RA State Budget for 2023.
The draft designs to reconstruct the final amount of the obligations – mentioned about 315 billion AMD between the RA Government and financial organizations, accordingly 70% and 30% in proportion. Moreover, the RA Government will issue state treasury bonds in the amount of 70% being assumed obligations by the RA Government, obtaining the right to the demand towards the reconstructing whole obligations. Besides, it is proposed to allow the RA Government issuing treasury bonds – maximum 225 billion AMD.
“As a result, it’s expected to essentially mitigate the risks arising in the RA financial system and the risks being created for the economy stemming from them, which will let to preserve the financial stability of importance for the stable development of economy. Besides, it is expected to restore the creditability and give an opportunity while not carrying out their activity in the future not to meet obstacles in the relations with the financial system. At the same time, it is proposed to set regulations, as a result of which the abovementioned deal will not cause taxes for the RA financial organizations,” Vahe Hovhannisyan said, proposing to approve the presented draft.
Read also
The RA NA Vice President Hakob Arshakyan inquired how the responsibility of the banking system in the created situation is recorded in the given Code, and which are the obligations, which they assume.
“The Government expressed its readiness to take the great part of the burden on itself, as a consequence of which the whole part of the rights to the obligation is given to the Government, for which the banking system receives the state treasury bonds. We mitigate the risks, which the banks should bear in other conditions,” Vahe Hovhannisyan said.
Answering the deputies’ questions, the Minister of Finance presented clarifications regarding the issues on bond terms, the disclosure of possible false deals, and banking secret.
“This is, in fact, our next support tour compatriots forcibly displaced from Nagorno Karabakh,” the Chair of the Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan noted in his speech, underlining that it is a rather balanced draft, where the community, the society, the state, the banks, taking the burden on them, help our Nagorno Karabakh compatriots, by that supporting also our statehood, economy and the financial stability.
On behalf of the RA NA Armenia Faction, the Secretary of the Faction Artsvik Minasyan in his speech extremely highlighted the support being shown to the financial, banking system and noted that the issue should be completely solved, in terms of preparing the paper envelope of the property claims of the citizens, other entities towards Azerbaijan for making complete base.
On behalf of the RA NA Civil Contract Faction in his speech Gevorg Papoyan mentioned that this is a political decision, and its beneficiary are considered to be the Armenians of Nagorno Karabakh, the financial organizations of Armenia and the RA citizens. According to him, if today that political decision is made, then it is possible that we’ll have problems regarding the financial stability. Therefore, similar risks will be eliminated by the adoption of the law.
In his final speech the Minister of Finance touched upon the raised questions, noting that the proposing draft is an effective balanced decision, and its aim is ensuring the stability of the banking system.
National Assembly of the Republic of Armenia
