Annual Report 2019 slide image

Annual Report 2019

Central Bank of the Republic of Armenia 15. Investment securities (continued) In thousands of Armenian Drams Debt securities at FVOCI in foreign currency ECL as at 1 January 2018 New assets originated or purchased At 31 December 2018 16. Operations with the International Monetary Fund Assets due from the IMF In thousands of Armenian Drams Placements with the IMF Notes to the 2019 consolidated financial statements Stage 1 Total 11,999 11,999 11,999 11,999 31 December 2019 31 December 2018 Membership quota in the IMF (subscription) SDR holdings in the IMF Accrued interest Total placements with the IMF 85,438,192 2,953,756 6,282 88,398,230 86,655,352 2,887,490 5,655 89,548,497 The Republic of Armenia is a member of the International Monetary Fund. The Bank holds the quota for the Republic of Armenia membership in the IMF. The quota balance is a special type asset. Quotas vary based on the economic size of each country and are determined by the Board of Governors of the IMF. The quota determines a member's voting power in the IMF, the limits of access to the financial resources of the IMF and a participant's share in the allocation of SDRs, the IMF's unit of account. The 75% of the quota of the Republic of Armenia was paid in the form of non-interest-bearing promissory notes issued to the IMF by the Bank. As at 31 December 2019 the quota of the Republic of Armenia in the IMF amounted to SDR 128,800 thousand, or AMD 85,438,192 thousand at the year-end official exchange rate of Armenian Dram to SDR (2018: SDR 128,800 thousand or AMD 86,655,352 thousand at the year-end official exchange rate of Armenian Dram to SDR). The quota does not earn interest and is a non-current asset. The Bank maintains an SDR-denominated current account with the IMF used for processing and settlement of transactions with the IMF. This current account earns interest based on the SDR Interest Rate which is published by the IMF on a weekly basis. Movements in SDR holdings account during the years ended 31 December 2019 and 31 December 2018 were as follows: In thousands of Armenian Drams Balance of SDR holdings as at 1 January Purchase of SDRs 2019 2,887,490 37,649,890 2018 3,491,637 34,626,810 Repayment of loans to the IMF: On behalf of the Bank PRGT EFF On behalf of the Government (4,182,497) (2,867,948) (17,289,350) (15,701,960) PRGT (13,514,842) (13,831,234) Payment of loan related commission Other fees (76,712) (913) (1,011) Payment of interest for use of the IMF resources: On behalf of the Bank (2,003,820) (2,201,503) Payment of interest for use of funds received under SDR allocation (611,525) (526,439) Income on SDR holdings 23,945 19,568 Translation differences Balance of SDR holdings as at 31 December (120,430) 2,887,490 The amounts of transactions in the table above are represented in AMD equivalent at SDR/AMD exchange rates at the dates when each of transactions had place. 72,090 2,953,756 30 30
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