YEREVAN. - The Armenian Government has approved the package of bills, which will facilitate the process of the Armenian business entrance to the international financial markets of derivatives.

The draft amendments to the Law on Securities Market and package of accompanying bills were adopted at the Cabinet hearing Thursday.

According to the Chairman of the Central Bank of Armenia (CBA), Arthur Javadyan, the mentioned bills are aimed at introducing ICDM standard in Armenia, which will allow to sign internationally acceptable agreements with secondary financial instruments (sale and repurchase agreement, futures, options, swaps, etc.). The reforms are carried out in cooperation with the European Bank for Reconstruction and Development (EBRD), on the basis of the International Swaps and Derivatives Association (ISDA).

The derivatives will allow the business to mitigate the risks related to the market (currency rates, commodity prices). This is a raw material price hedging (oil products, grain, etc.) or currency swap which will allow to neutralize the discrepancy between the income and expense currencies (such swaps can, for instance, be signed by exporters and importers. Part of the importers’ expenses is in AMD, their income being in foreign currency: the situation is the other way round in case of importers).