IMF: Legislation on derivatives may enter Armenia parliament before end of 2016
Международные новости
YEREVAN. - New legislation on financial derivatives may enter parliament before the end of 2016, Ms Teresa Daban Sanchez, the Resident representative of the International Monetary Fund (IMF) to Armenia, told journalists Wednesday in Yerevan.
Previously, the IMF has discussed with the Government of Armenia the importance of currency hedging instruments, which could protect revenues from export contracts. This is particularly true for Russian ruble, as Russia is the largest export market for Armenia. In this environment, given the uneven performance of ruble, exporters may find that their receivables in rubles can actually buy less at the moment of transaction than they could at the contract date.
However, hedging contracts need legal framework, including mechanisms of taxation, for cases when they yield income.
This issue is on the agenda of the draft legislation on derivatives, which the Central Bank of Armenia (CBA) is now preparing with the assistance of the European Bank for Reconstruction and Development (EBRD). Hopefully, the legislation will be submitted to the National Assembly (NA) before the end of the year, Ms Sanchez added.
For currency insurance to become a routine for business, it needs more awareness of how it eliminates risks to foreign trade. A little expenditure here may be as much important (and as much normal) as car insurance bills, she added.
