Annual Report 2019 slide image

Annual Report 2019

Central Bank of the Republic of Armenia Notes to the 2019 consolidated financial statements 16. Operations with the International Monetary Fund (continued) Liabilities due to the IMF In thousands of Armenian Drams Securities account Adjustment account for AMD liabilities to the IMF Account 1 Account 2 SDR allocation ECF: Carrying value Deferred income Interest accrued Total liabilities due to the IMF 31 December 2019 159,285,304 (823,199) 31 December 2018 159,285,304 (6,611,507) 9,436,432 35,173,286 2,590 2,703 58,366,397 59,197,890 14,341,411 18,797,753 13,795,377 17,928,595 546,034 869,158 477,671 339,968 240,948,903 266,323,100 The Securities account, Adjustment account and Account 1 represent the amounts of the liability of the Bank as per EFF and the membership quota. Currently all major settlements with the IMF are made through Account 1. Account 2 is used by the IMF for administrative purposes. As at 31 December 2019 part of the Bank's liabilities to the IMF and the membership quota are covered by the promissory note in the amount of AMD 159,285,304 thousand (31 December 2018: AMD 159,285,304 thousand). Except for membership quota and liability in respect of SDR allocation, the Bank's liability to the IMF as at 31 December 2019 represents liabilities as per Extended Credit Facility and Extended Fund Facility. Funds received under Extended Fund Facility are recorded on Account 1. The Extended Credit Facility provides financial assistance to the countries with protracted balance of payments problems. The ECF was created under the newly established Poverty Reduction and Growth Trust (the "PRGT") as part of a broader reform to make the IMF's financial support more flexible and better tailored to the diverse needs of Low Income countries, including in times of crisis. As at 31 December 2019 the ECF bears no interest (2018: 0%). The loans outstanding as at 31 December 2019 mature in June 2020 - June 2023 (31 December 2018: June 2019 - June 2023). The Extended Fund Facility (the "EFF") is provided to the countries to overcome medium-term payment problems. The EFF interest rate is floating and published by the IMF on a weekly basis as Adjusted Rate of Charge. The loans outstanding as at 31 December 2019 mature in March 2020 - June 2027 (31 December 2018: June 2019 - December 2027). The IMF for the purpose of increasing the international reserves of the member countries makes SDR allocations to the member countries. The SDR allocation interest rate is floating and published by the IMF on a weekly basis as SDR interest rate. The SDR allocation has no maturity date but can be cancelled by the IMF. 31
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