The National Bank of Azerbaijan (NBA) had competed the work over the draft law on insurance of desists and savings. The NBA told Trend that the bill was submitted to the President’s Executive Power for consideration and further submission to the parliament.
The preparations covered an international examination of the draft law (in particular,
ith participation of the German Bank for Reconstruction KfW), as well as consideration of the opinion of banking community (the Association of the Azerbaijani Banks).
The NBA will allow the banks to the participation in the capital in case of fulfillment of requirements by the adequacy of capital, liquidity and other prudential norms. The amount required for full covering deposits will be linked with the amount of the per capita gross domestic product (GDP). The savings and deposits will be covered in all currencies. The law will be adopted in 2005. In accordance with the intergovernmental agreement on financial cooperation between Germany and Azerbaijan in 2003-2004, KfW will allot a 1m euro grant in technical support and a 5m euro privileged credit in initial capitalization of the Azerbaijani Fund of Deposit Insurance.
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