Baku, Azerbaijan, May 15
By Elchin Mehdiyev - Trend:
The Central Bank of Azerbaijan (CBA) has solved the problem with the lack of equity.
The loss, which arose by the end of the year, resulting from the revaluation of assets and liabilities in foreign currency and gold on the balance of the Central Bank, will be covered by our own capital reserves, according to amendments to the law "On the Central Bank of Azerbaijan" adopted at a plenary session of the Milli Majlis.
In case of reducing assets below the amount of its liabilities, the resulting lack of capital will be repaid in one fiscal year at the expense of securities issued by the state, according to the changes.
After the formation of reserve capital and confirmation of the annual financial report by an audit resolution, the available remainder of realized profit of the Central Bank is transferred to the state budget.
The Central Bank capital consists of its share capital and capital reserves. The authorized capital of the Central Bank set at 50 billion manats, according to the law. Capital reserves should not be less than the authorized capital of the CBA in accordance with changes to the law, and are formed by contributions from the profits on the results of the fiscal year.
The official exchange rate for May 15 is 1.0472 AZN / USD.
Until now, the minimum level of capital reserves was set at 15 percent of the national currency cash released into circulation.
Edited by CN