Annual Report 2019
Central Bank of the Republic of Armenia
Notes to the 2019 consolidated financial statements
27. Related party transactions (continued)
Transactions with the Government of the Republic of Armenia
The outstanding balances and average contractual interest rates with the Government are as follows:
31 December 2018
31 December 2019
Average
contractual
interest rate
Balance
outstanding
Balance
outstanding
Average
contractual
interest rate
In thousands of Armenian Drams
Consolidated statement of financial position
Assets
Securities of the Republic of Armenia classified as
financial assets measured at fair value through
other comprehensive income (Note15)
13,189,425
13,189,425
11.4%
13,707,676
13,707,676
11.0%
Promissory note issued by the Government
(Note 15)
Balance at 1 January
73,810,843
Balance at 31 December
73,810,843
Assets at 31 December
87,000,268
73,810,843
73,810,843
87,518,519
Liabilities
Due to the Government of the Republic of Armenia
(domestic currency, Note 23)
326,045,767
4.9%
184,926,978
4.5%
Due to the Government of the Republic of Armenia
(foreign currency, Note 23)
1,248,593
Liabilities at 31 December
327,294,360
5,822,025
190,749,003
The movement of deposits included in liabilities due to the Government in domestic currency was as follows:
In thousands of Armenian Drams
Balance at 1 January
Additions
2019
135,487,725
1,033,000,000
Interest charge
Redemption (including interest payment)
13,324,977
(896,812,227)
(870,120,065)
2018
115,325,158
883,000,000
7,282,632
285,000,475
135,487,725
Balance at 31 December
The movement of the loans from the Government in domestic currency was as follows:
In thousands of Armenian Drams
2019
2018
Balance at 1 January
Interest charge
Redemption (including interest payments)
321,865
9,698
(331,563)
965,468
46,067
(689,670)
321,865
Balance at 31 December
Amounts included in the consolidated statement of comprehensive income in relation to transactions with the
Government are as follows:
In thousands of Armenian Drams
2019
2018
Consolidated statement of comprehensive income
Interest income from Government securities
Interest expense
Net foreign exchange (loss)/gain
Net (loss)/gain on derivatives
1,317,084
(13,737,026)
(59,234)
(453,848)
1,458,881
(8,049,811)
68,796
552,850
In accordance with the agreement dated © January 2007 with the Government the Bank is obliged to exchange main
foreign currency denominated state budget inflows and outflows at exchange rates determined in the Government's
budget message for the given year which is a basis for the calculation of indexes in the Law On the State Budget of the
Republic of Armenia. Gain or loss of the Group as a result of such foreign currency exchange operations is accounted
for as result on derivatives.
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