Baku, Azerbaijan, Jan. 26
By Seymur Aliyev - Trend:
Population's deposits in financially healthy banks of Azerbaijan will be insured completely, Elman Rustamov, the chairman of the Central Bank of Azerbaijan (CBA), told reporters Jan. 26.
"The parliament has recently passed a law on full insurance of all deposits," he said. "The law is already being prepared for signing."
"The deposits in the healthy, big banks with the prospect of growth will be insured at 100 percent," added Rustamov. "But it is not a secret that there are a number of weak and unpromising banks in the banking system. They hold a very small share of the sector. Our analysis has showed that some 98 percent of the deposits in such banks are subject to the current deposit insurance rules."
Rustamov also spoke about the banks that are being closed, adding that nearly 100 percent of their deposits are subject to the insurance.
"We have already begun the process of returning deposits to the Ganja Bank," he further said. "We must act as soon as possible for depositors to be able to take away their money."
He added it is also planned to strengthen the banking sector and increase its stability and sustainability.
"The CBA is preparing an action plan," said Rustamov. "For this purpose, we have invited the WB and IMF experts to make the sector more healthy and stable."
There are 43 banks in Azerbaijan.