Annual Report 2019 slide image

Annual Report 2019

Central Bank of the Republic of Armenia Notes to the 2019 consolidated financial statements 4. Interest income In thousands of Armenian Drams Interest income from foreign currency assets Nostro accounts Term deposits Placements with the IMF Other Total interest income from foreign currency assets 2019 2018 2,754,182 382,698 1,354,020 597,257 24,634 18,015 70,469 99,022 3,231,983 2,068,314 Interest income from domestic currency assets Placements and investments with banks and other financial institutions Financial assets measured at fair value through other comprehensive income 30,722,771 24,458,016 1,317,084 1,458,881 Total interest income from domestic currency assets 32,039,855 25,916,897 35,271,838 27,985,211 Total interest income calculated using effective interest rate 5. Interest expense In thousands of Armenian Drams 2019 2018 Interest expense on foreign currency liabilities Other borrowed funds 3,676,153 3,735,460 Due to the IMF 2,518,184 2,810,517 Total interest expense on foreign currency liabilities 6,194,337 6,545,977 Interest expense on domestic currency liabilities Due to the Government (Note 27) 13,737,026 8,049,811 Debt securities issued 677,398 710,782 Deposits and accounts of financial and other institutions Other 281,005 1,034,651 202,443 135,818 Total interest expense on domestic currency liabilities 14,897,872 9,931,062 Total interest expense 21,092,209 16,477,039 6. Net foreign exchange loss In thousands of Armenian Drams 2019 2018 Net loss from foreign exchange translation Net gain on spot transactions Total net foreign exchange loss (1,982,331) 526,539 (1,455,792) (3,335,741) 349,174 (2,986,567) Included in the net loss from revaluation of monetary assets and liabilities is a foreign exchange translation loss of AMD 7,563,296 thousand on financial instruments at fair value through profit or loss (2018: loss in the amount of AMD 8,455,505 thousand). 7. Net (loss)/gain on derivatives In thousands of Armenian Drams 2019 Net (loss)/gain on forward contract with the Government (Note 27) Net gain/(loss) on swaps under own management (453,848) Net loss on futures under own management 5,851 (29,635) Total net (loss)/gain on derivatives 2018 552,850 (59,840) (24,208) 468,802 (477,632) In accordance with the agreement dated 5 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 Bank as a result of such foreign currency exchange operations is accounted for as result on derivatives. 21
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