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The history of the stabilization account in Armenia has begun from 2009. The Government formed a deposit account, a stability single account in the treasury single account . In order to combat the crisis with these means, the injection of financial resources was carried out, providing an opportunity to smoothly fulfill the obligations provided for by the state budget. In case of Armenia, the main problem is that the balance of the stabilization account opened as a deposit account in a treasury single account does not have any legal limit, so the volume of the account balance is not regulated by law. The RA Deputy Minister of Finance Armen Hayrapetyan informed about this, presenting the package of draft laws on Making Addenda to the RA Budgetary System and on Making Addenda to the RA Law on Treasury System.

The legislative initiative was debated in the first reading at the NA regular sitting on September 14.

According to Armen Hayrapetyan, the importance of the stabilization account was also substantiated by the study of international experience. The i nternational experience shows that the presence of a cash buffer or stabilization account is an accepted practice in the field of state budget implementation and government cash flow management, which is also an important tool for mitigating the impact of possible economic shocks.

The purpose of the initiative is to regulate the process of management, replenishment and use of a stabilization account by law, authorizing the Government to establish the procedure for the replenishment and use of the funds of the stabilization account.

The co-rapporteur, the Chair of the Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan emphasized that the adoption of the legislative initiative is urgent, especially these days. The Stabilization Fund will help to resolve the issues more easily in case of military, health problems, economic crisis.

The parliament debated in the second reading draft law authored by the deputy Sergey Bagratyan on Making Amendments to the Constitutional Law the Rules of Procedure of the National Assembly.