Annual Report 2019
Central Bank of the Republic of Armenia
1.
Principal activities
Notes to the 2019 consolidated financial statements
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards ("IFRS") as at 31 December 2019 and for the year then ended for the Central Bank of the Republic of Armenia
(the "Bank" or the "Central Bank") and its subsidiaries (together referred to as the "Group").
The Bank is a legal entity the sole founder of which is the Republic of Armenia.
The Bank operates in accordance with the Constitution of the Republic of Armenia, Law on the Central Bank of the
Republic of Armenia (the "Law") and other laws of the Republic of Armenia.
The registered address of the Bank is 6 Vazgen Sargsyan street, Yerevan 0010, Republic of Armenia. The number of
employees of the Bank as of 31 December 2019 was 778 (2018: 736).
The Bank does not aim to earn profits. The financial results of the Bank's activities, as well as the structure of its assets,
liabilities and equity are defined by the functions of the Bank.
In accordance with the Law the prime objective of the Bank is ensuring price stability and financial stability in the Republic
of Armenia. In order to ensure price stability the Central Bank develops, approves and implements monetary policy
programs. In addition to its prime objective, other objectives include:
Ensure the stability, liquidity, solvency and other necessary conditions for sound operation of the financial system
in the Republic of Armenia;
Create and develop of an effective payment and settlement system;
Issue the national currency of the Republic of Armenia and regulate its circulation;
Organise and regulate anti-money laundering and anti-terrorism financing activities;
Secure the conditions necessary for protecting the rights and lawful interests of consumers in the financial system;
Ensure free and fair economic competition in the financial system and etc.
To accomplish its objectives the Central Bank:
►
Acts as financial agent and advisor of the Government of the Republic of Armenia (the "Government");
Licenses commercial banks and, in cases envisaged by the legislation, other entities, supervises and regulates
their activities;
Uses and manages international reserves of the Republic of Armenia and etc.
The Bank's largest subsidiaries as of 31 December 2019 are listed below:
Name
Country of
incorporation
Principal
activity
Controlled, %
2019
2018
Date of
establishment
"Armenian Card" CJSC
Republic of Armenia
Payment and
settlement services
56.25
56.25
March 2000
"Hayincassatsia" CJSC
Republic of Armenia
Transportation/
delivery of cash
100.00
100.00
April 1998
"National Mortgage
Republic of Armenia Mortgage refinancing
Company" RCO CJSC
100.00
100.00
June 2009
"Home for Youth" RCO CJSC Republic of Armenia
"Small and Medium Business Republic of Armenia
Mortgage refinancing
100.00
100.00
February 2010
Lending support
Credit Support" CJSC
100.00
100.00
December 2010
"Vehicle Single Window"
Republic of Armenia
Insurance
CJSC
infrastructure support
100.00
100.00
December 2013
"Stak Processing" CJSC
Republic of Armenia
Payment and
settlement services
100.00
100.00
December 2017
"Stak Money Transfer" CJSC Republic of Armenia
Payment and
settlement services
100.00
82.64
December 2017
Summary of significant accounting policies
2.
(a)
Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards ("IFRS") as of and for the year then ended 31 December 2019 for the Bank and its subsidiaries.
5View entire presentation