quality of data reported by banks, and adopt more streamlined approaches to the supervision on the whole. 16 Continue activities towards introduction of best international standards on insurance regulation and supervision, namely the new principles developed by the International Association of Insurance Supervisors, improve the current supervision approaches, and in particular continue further efforts towards the phase by phase introduction of the Solvency 2 framework. Evaluate the “Unified System of Securities Registries Maintenance and Settlement” of the Central Depository of Armenia in accordance with the principles established by the Bank for International Settlements, in order to increase the effectiveness in risk management and functionality of securities settlement systems in the Republic of Armenia and align these systems with internationally recognized standards. Evaluate the current changes resulting from the assessment of the EPS of the Central Bank and based on the recommendations for the risk management system for the single purpose to establish compliance of the system operation with the principles indicated by the Bank for International Settlements, which will help the system minimize the emergence of risks and will increase the effectiveness of its performance. 3. Expected outcome and policy action Monetary policy The Central Bank of Armenia (the CBA) is a legal entity empowered with state functions. The primary goal of the CBA is price stability, pursuant to the Constitution of Armenia, Article 83.3 and Law on Central Bank of Armenia, Article 4. Since January 1, 2006, the CBA has been exercising an inflation targeting strategy which lays down that the forecast level of inflation is an intermediate goal and the interest is an operational goal. The CBA coordinates the primary goal with the Government of Armenia, as stipulated by the Armenian Law on State Budget, and approved by the National Assembly of Armenia. The CBA itself decides on the strategy of monetary policy it implements, as well as intermediate and operational target indicators that are contained in the monetary policy program and subject to presentation to the National Assembly. The program outlines the main directions of the monetary policy and the monetary instruments which the CBA uses in order to fulfill its objectives. The CBA also conducts a foreign exchange policy. Starting from January 2006 Central bank of Armenia within the scope of the Law on Central Bank of Armenian officially adopted new framework of inflation management` moving to the strategy of inflation targeting. The rationale for the