DEVELOPMENT OF PAYMENTS AND SETTLEMENTS RELATIONS
CBA will carry out work over 2007 to develop the Armenian payments and settlements system in the following directions: 1. Improving the regulatory framework for, and determining general principles of, activities of payments and settlements organizations; 2. Implementing oversight of the payment and settlements system; and 3. Supporting development of non-cash payments in Armenia. Over 2007, CBA will continue regulating the payments and settlements system of Armenia. Particularly, there will be further improvement of the regulatory field based on the Republic of Armenia Law on Payment System and Payments and Settlements Organizations, adopted by the National Assembly in 2004. This will enable to regulate payments and settlements operations as well as activities of and control over payments and settlements organizations in Armenia. Besides, CBA will place focus on payment instruments / products introduced and applicable on the basis of new technologies. CBA will continue circulating government and corporate securities and developing clearing and payment procedures that contain minimal risks. Given the policy of identifying and managing risks in financial systems and considering the trends of development of the payments and settlements system, CBA will continue introducing the principles of the payments and settlements system oversight in Armenia and regulating related processes. CBA will, in consultation with the Government, continue taking actions to encourage non-cash payments and develop the retail market. In the meantime, in collaboration with the banking system, government departments and other concerned parties, efforts will be made to prevent and, where needed, to minimize and/or find solution to the factors that hinder the execution of non-cash payments.
38