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Rate on deposit insurance may be revised in Azerbaijan

Business Materials 14 May 2014 17:02 (UTC +04:00)
Upper limit of rate on deposits, insured in Azerbaijan may be revised next week, head of the Azerbaijan Deposit Insurance Fund, Azad Javadov told Trend.

Baku, Azerbaijan, May 14
By Emin Aliyev - Trend:

Upper limit of rate on deposits, insured in Azerbaijan may be revised next week, head of the Azerbaijan Deposit Insurance Fund, Azad Javadov told Trend.

Today, the fund insures the deposits, rate of which does not exceed 10 percent per annum.

"After consultation with the Central Bank of Azerbaijan (CBA), this issue will be discussed at the meeting of Board of Trustees of the fund," Javadov said, without revealing any more details.

Earlier, the CBA noted about the possible reduction of this rate due to the observed trend of decreasing market interest rates on deposits. As of April 1, 2014, the average rate on physical entities' deposits in manats was 9.73 percent compared to 10.33 percent as of April 1, 2013.

The average rate on individual clients' deposits in foreign currency amounted to 10.13 percent compared to 10.69 percent as of early April 2013.

At the same time, opportunity to change the maximum amount of insurance coverage for the deposit currently is not being discussed, Javadov said.

At present, the maximum amount of coverage is 30,000 manat. The depositors do not make any payments for insurance of their deposits, and insurance payments are made only by the banks.

The official exchange rate May 14 is 0,7843 AZN / USD.

Edited by S.I.

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