Republic of Armenia has around 1 billion 850 million state reserves, and they are under Central Bank’s supervision. Armenian people have no information about the state reserves, their condition, and destiny. Fancy knowing in which currency are they kept: in USD or AMD, or any other foreign currency, or in form of vouchers? Do they bring any profit to our country? It would be senseless to keep that money in passive state, so it will not be wrong to assume that it provides some income. But so far there is no information about Armenia’s income, its reserves and its expenditure. Nowadays, when the National Assembly is in its phase of reviewing 2012 draft budget, it would also be right to know whether the income gained from reserves is anyhow revealed in the draft. The budget has a major issue of income collection, and the anticipated amount from tax, penalty collection or any other means are highlighted in the draft. Income gained from the reserves is a similar means, which will be further expended. Never has the question been raised by any of the MPs during the budget considerations in recent years. Neither the Government nor Central Bank has ever provided information about that. Yesterday we tried to ask some MPs whether they have any idea about the state reserves, how well they are arranged, or may be those reserves had the same fate as the gold reserves. It is worth to remind when in 2003 the price of ounce was only 400 USD, RA CB sold all the Armenian gold reserves, i.e. 1 tone 400 kg. That amount of gold was sold by 17 million 800 K USD. Former CB president Tigran Sargsyan and the CB leadership considered that deal as a historical transaction ever being so successful for Armenia. Shortly after that transaction the Gold price sharply increased and is still in the process of increasing. And Armenia lost dozens of million dollars in the result of that deal. Yesterday not a single MP wanted to refer to RA state reserve subject. They were either unaware of the issue, or considered that a confidential topic, or didn’t even want to discuss that point at all. We tried to find information from the CB, but we did not manage, they promised to answer next week. Hrant Bagratyan, ANC member, former prime-minister provided several clarifications regarding the issue.
– Mr. Bagratyan, do you know where and in what condition are the RA state reserves?
– That is a real good question, because as much as I understand, the question is about 1 billion 850 million USD. Frankly speaking I do not know where that money is. I am surprised that there is no information regarding that. I have raised that issue for several times, and when the Government is going to report about where that money is and how do they look like today?
– However, anyone ever talking about the reserves, they always been referred in USD format.
– Probably the prevailing part of those reserves is in USD currency. We have never seen that structure in form of a report. It is quite possible that it is in voucher form. That is to say, when we say the reserve is in USD, or EU or £ we mean to say it exists somewhere. May be it is exchanged into vouchers, as I could guess that from hints of the Minister of Finances. By the way, even if it is in vouchers, still it is in foreign currency.
– And may be that issue is a state secret, and is not a subject of publishing?
– That is the money of Republic of Armenia’s people. Around the half of 1.850 million of reserves, was accumulated during the hard war times, i.e. 1996-1998. How it can be a secret? Right the opposite it should have been exchanged with profitable vouchers or deposits. Armenia should have income from those reserves, as it used to in 1995-1996, and that income should be integrated into the budget.
– You mean to say, if during couple of difficult war years (1993-1997) 850 million USD was accumulated, only 1 billion USD has been saved up in its proceeding or developing years?
– Right now I cannot recall by heart, but it was something like that.
– Doesn’t this mean that Armenian authorities have not been thrifty or prudent?
– Let us leave aside the thriftiness. Of course Armenian reserves are very weak, and little, but there is another question: where are they and who they have agreed with? If they are deposited, has the National Assembly approved on the deposit agreement? Who has made the decision regarding the deposit and not of anything else? These are questions which are unavailable to us.
– What purpose those reserves are accumulated for?
– The reserves are made to be spent in our thin times, give salaries, buy bread, and make our internal expenses. Right because of that reason we need to know of those reserves. It is not information about military weapons. It is not a secret that there is a general figure of reserves.
– During this time have you followed on those reserves having been used on some purpose? Or if they have, was it objective, or not?
– I know nothing of that. I feel astonished when the NA reviews the budget issue and nobody asks about that. One of the state incomes is the one received from reserves, vouchers or the one gained from that deposit. It is not revealed in budget. All in all it is one of the balance lines of CB. CB money is the Government’s money.
– So, would it be right to receive income out of those reserves, and be highlighted in separate line in budget? It would be clear to everybody how much income Armenia has from those reserves, and on which expenses they are directed.
– Certainly, I am surprised than none of the MPs has ever raised that question.