LAW OF THE REPUBLIC OF ARMENIA

of June 30, 1996 No. ZR-69

About the Central bank of the Republic of Armenia

Accepted by National Assembly of the Republic of Armenia on June 30, 1996

Chapter 1. General provisions

Article 1. Central Bank of the Republic of Armenia

1. National Bank of the Republic of Armenia is the Central bank of the Republic of Armenia. Central Bank of the Republic of Armenia (further - the Central bank) is the legal entity given with the state functions whose single founder is the Republic of Armenia.

1.1. In the Central bank of the relation, connected with the state secret, are regulated by the Law "About the State Secret".

2. Central Bank - the single centralized system including the main office and territorial subdivisions of Bank. Locations of the main office of the Central bank - the city of Yerevan.

3. Territorial subdivisions of the Central bank are its branches and representations. Central Bank and its territorial subdivisions have seal with the image of the Coat of arms of the Republic of Armenia and the name.

4. Central Bank for the purpose of realization of the purposes on its own behalf can:

- sign contracts, acquire the rights, assume obligations, including take the credits;

- act as the claimant and the defendant;

- in the cases provided by this Law to acquire, own, use and alienate property, the property and personal non-property rights.

5. Central Bank when implementing the purposes and functions assigned to it by the Constitution and the law of the Republic of Armenia is independent of state bodies of the Republic of Armenia.

6. Central Bank and the Government do not bear responsibility according to obligations of each other if those were not accepted.

Article 2. Functions of the Central bank

1. Central Bank in case of realization of the purposes performs the functions assigned to it by the law.

2. Central Bank keeps the magazine of registration of the acts.

3. Central Bank within the competence adopts legal acts of sublegislative normative, internal and individual nature.

Council of the Central bank makes sublegislative normative, individual decisions, and in case of performance of the Central bank as bank – internal legal acts – decisions.

The chairman of the Central bank accepts individual, and in case of performance of the Central bank as bank – internal legal acts – decisions and orders.

4. The acts of sublegislative normative nature adopted by the Central bank strengthening the regulation mode establishing additional or more strict liability have no retroactive force.

Article 3.

Voided

Article 3.1. Regulatory legal acts of the Central bank

1. Central Bank adopts sublegislative regulatory legal acts only if it is authorized by the law, and within, established by the law, observing the principles of legality and definiteness. These acts are adopted and published according to the procedure, established by the law.

2. Central Bank can adopt sublegislative regulatory legal acts in the following cases:

a) the regulatory legal acts concerning establishment and calculation of economic standard rates of the financial organizations;

b) regulatory legal acts on currency control;

c) regulatory legal acts in the sphere of protection of consumer interests;

d) the regulatory legal acts governing the relations connected with anti-money laundering and financing of terrorism;

e) regulatory legal acts about licensing, registration, reorganization, liquidation, bankruptcy, insolvency, the termination of activities of the financial organizations;

e) the regulatory legal acts establishing requirements to participants and heads of the financial organizations;

g) the regulatory legal acts establishing requirements to the bargains concluded by the financial organizations or their participants;

h) the regulatory legal acts regulating the security market and investment services;

i) regulatory legal acts about processing of data, personal data in financial system;

j) regulatory legal acts on regulation of compulsory insurance of the funded pension system and responsibility following from use of vehicles;

k) regulatory legal acts about control of the financial organizations;

l) the regulatory legal acts regulating system of guaranteeing deposits;

m) regulatory legal acts on regulation of payment and settlement systems;

o) in the cases provided by the law – the joint regulatory legal acts concluded with other state bodies relating to financial system;

o) regulatory legal acts about protection of the economic competition in financial system;

p) in the other spheres and cases provided by the law.

Article 4. Main objectives and functions of the Central bank

1. Main objectives of the Central bank are ensuring price stability and financial stability in the Republic of Armenia.

2. Function of the Central bank for the purpose of ensuring price stability is taking measures to ensuring price stability. The Central bank develops for realization of the purpose of price stability, claims and performs programs of monetary policy.

3. If other purposes of the Central bank contradict its main objectives, then the Central bank gives preference to main objectives and is guided by need of their realization.

Article 5. Other purposes and functions of the Central bank

1. The other purposes of the Central bank are:

a) providing necessary conditions for stability, feasibility, solvency and normal activities of financial system of the Republic of Armenia;

b) collection, generalization and publications of statistics of monetary, financial system, paying balance, international investment line item and external debt;

c) creation and development of efficient payment and settlement systems;

d) release of currency of the Republic of Armenia, organization and regulation of money turnover;

e) organization and regulation of anti-money laundering and terrorism financing;

e) providing necessary conditions for investor protection of securities, forming and preserving system of the fair pricing for securities in the market coordinated and normal functioning and development of the fair, transparent and reliable security market;

g) providing necessary conditions for protection of the rights and legitimate interests of consumers in financial system;

h) ensuring the free and fair economic competition in financial system.

2. For realization of the Central bank is more whole:

a) performs bank servicing of the Government;

b) is financial agent and the adviser of the Government;

c) licenses banks, in the cases provided by the law – also other persons, recognizes the organizations as financial groups, regulates and controls their activities;

d) grants to banks the loans as the last resort lender;

e) regulates and controls payment and settlement systems, exercises supervision of payment and settlement systems and settlement systems of securities;

e) owns, uses and disposes of the international reserves of the Republic of Armenia;

g) obtains necessary data for collection, generalization and publication of statistics of monetary, financial system, paying balance, the international investment line item and external debt, individual (nominal) statistical data about paying balance, the international investment line item and external debt (the data which are statistical secret) from state bodies and local government bodies, including from National statistical service of the Republic of Armenia. The individual (nominal) data obtained from National statistical service are used only for the statistical purposes according to requirements of the fundamental principles of official statistics of the United Nations. The national statistical service of the Republic of Armenia and the Central bank jointly determine contents of the data collected by National statistical service of the Republic of Armenia on the paying balance, the international investment line item and external debt which are subject to collection and collection methodology;

h) performs collection, systematization and the analysis of data on money laundering and financing of terrorism, exchange of data and their provision to interstate competent authorities and the international organizations, and in the cases provided by international treaties of the Republic of Armenia – to also competent authorities of other states;

i) in the procedure established by the law provides the free and fair economic competition in financial system, adopts sublegislative regulatory legal acts about tipologiya of abuse of dominant position, anti-competitive agreements, to concentration;

j) performs researches on macroeconomic, financial politicians, economy and the field of regulation.

Article 6. Program of monetary policy

1. Central Bank quarterly publishes the program of monetary policy for the next 12 quarters which has advisory nature.

2. Programs of monetary policy include: 

a) forecasts of inflation;

b) directions of monetary policy; 

c) other necessary provisions founded by council of the Central bank for implementation of the purposes established by the Law.

3. Voided.

Article 7. Cooperation with state bodies

1. Central Bank when implementing the purposes cooperates with state bodies of the Republic of Armenia.

2. The chairman of the Central bank or its deputies periodically gives to National Assembly and its commissions of explanation or explanation about policy of the Central bank.

3. Central Bank takes part in development of economic and financial programs of the Government, and also promotes their implementation if it does not contradict the purposes of the Central bank. During development of the program of monetary policy the Central bank consults with the Government,

4. The authorized representative of the Government of the Republic of Armenia can participate with the right of advisory vote in open sessions of Council of the Central bank and represent written opinion on the discussed questions.

Article 7.1. Cooperation of the Central bank with State commission on protection of the economic competition of the Republic of Armenia

1. Functions on the economic competition concerning persons, regulated or controlled by the Central bank, State commission on protection of the economic competition of the Republic of Armenia (further – the Commission) performs on the basis of cooperative principle with the Central bank.

2. Central Bank before adoption of sublegislative regulatory legal acts about abuse of dominant position, anti-competitive agreements, concentration represents them on opinion of the Commission.

 3. The commission chairman and the chairman of the Central bank sign the joint order by which are regulated:

a) the directions and procedures of cooperation connected with problems of protection of the competition;

b) cases and procedure for exchange of information between the Commission and Tsentralna bank, including about the undertaken actions for problems of the economic competition;

c) cases when the Commission and the Central bank perform the competences of the relation of persons, regulated or controlled by the Central bank and the procedure of representation in such cases of line item of the Commission and detail of mutual cooperation;

d) the other questions on protection of the competition in the sphere provided by this Article, and also not forbidden by the law.

4. About the problems on the economic competition in the sphere provided by this Article, the Commission reports the Central bank.

5. The commission abstains from any intervention in connection with the brought-up question on the economic competition if the Central bank reasonably reports to the Commission that this question, proceeding from the purposes of regulation established by the law is assigned to the Central bank, and the Central bank performs the functions established by the law.

The commission according to the procedure, established by this Article, can express line item, and the final decision is made by the Central bank.

6. Central Bank in the course of the undertaken actions shall give to the Commission opportunity to represent the line item within, established by the law. Central Bank surely stops on all questions which are brought up by the Commission, and line items expressed by it, specifying reasons for their acceptance or variation.

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