DECREE ISSUED BY THE PRESIDIUM OF THE SUPREME COUNCIL OF THE ABKHAZ ASSR on the laws of the Republic of Georgia “on Monetary Regulation in the Republic of Georgia”, “on the National Bank of the Republic of Georgia” and “on the Banks and Banking Activity”

The laws “On Central Bank of the Abkhaz ASSR (The Bank of Abkhazia)” and “on the Banks and Banking activity” were adopted by the Session of the Supreme Council of the Abkhaz ASSR on 28 February 1991 in conformity with the laws of the USSR “On the National Bank of the USSR” and “on the Banks and Banking Activity”. Pursuant to these laws the Bank of Abkhazia is included into unified system of the Central Bank of the USSR that shall carry out unified monetary, fiscal and foreign currency policy of the USSR.

The laws adopted by the Republic of Georgia “on Monetary Regulation in the Republic of Georgia”, “on the National Bank of the Republic of Georgia” and “on the Banks and Banking Activity” have established the monopoly of the Republic of Georgia on monetary and fiscal issues on the territory of the Abkhaz ASSR; Georgian Republican Bank of the State Bank of the USSR and other specialized Banks are declared as the property of the Republic of Georgia.

Moreover, several of the norms set out in the Georgian laws regarding the banks are not in agreement with the laws of the USSR, in particular: cash flow, emission, foreign currency regulation, monetary accommodation. The exclusive right of the USSR on currency issue and withdrawal of banknotes is breached. That is an attempt to change the banking system established by the USSR aimed at withdrawal of Abkhazia from the subordination of the unified banking system and introduction of the own currency of Georgia.

The laws adopted by the Republic of Georgia grossly violate the sovereign rights of Abkhazia in the part of realization of potential of the Abkhaz ASSR in banking activity rendered by the legislation of the USSR.

The Supreme Council of the Abkhaz ASSR decrees:

1. To consider null and void on the territory of the Abkhaz ASSR the laws adopted by the Republic of Georgia “on Monetary Regulation in the Republic of Georgia”, “on the National Bank of the Republic of Georgia” and “on the Banks and Banking Activity”, which undermine unified monetary, fiscal and foreign currency policy of the USSR.

2. The Central Bank of the Abkhaz ASSR shall secure efficient performance of the bank institutions and services in compliance with the laws “On Central Bank of the Abkhaz ASSR (The Bank of Abkhazia)” and “on the Banks and Banking activity”.

3. The Ministry of Finance of the Abkhaz ASSR shall not comply with the instructions of the Republic of Georgia related to the implementation of aforementioned laws of the Republic of Georgia and shall inform the Supreme Council of the Abkhaz ASSR in case of such instructions.

5. This Decree shall be sent to the Board of the National Bank of the USSR.

Chairman of the Supreme Council of Abkhazia V. Ardzinba

30 August 1991

(Personal archive of the author)