ADIF: No plan to raise loan from Azerbaijan’s Central Bank (UPDATE)
Details added (first version posted on 12:46)
Baku, Azerbaijan, March 3
By Anvar Mammadov - Trend:
The Azerbaijan Deposit Insurance Fund (ADIF) has no plans to raise a loan from the Central Bank in the near future, said Azad Javadov, the ADIF head at a press conference in Baku March 3.
"To date, ADIF has paid nearly 93 million manats to the three banks, where insured events occurred," added Javadov. "As is already known, ADIF's funds were 132 million manats, which means that we still have nearly 40 million manats left on our account."
"As it was noted by the head of the Central Bank of Azerbaijan, Elman Rustamov, the bank is ready to give us a loan in case if our funds aren't enough for payment of compensations," said Javadov. "But as of now, ADIF has all the necessary funds, so in the near future we aren't going to raise funds from the Central Bank."
He went on to add that in a month ADIF will also receive contributions from its member-banks.
ADIF member-banks are required to pay quarterly contributions amounting to 0.125 percent (0.5 percent per year) of the total amount of the insured deposits.
"ADIF will receive more than seven million manats in contributions," added Javadov. "In addition, the tendency shows that the flow of customers applying for compensations is reducing gradually. Earlier we paid up to 10 million manats a day, but now this amount is nearly two or three million manats, and it will gradually decline."
ADIF's head also said that in case if a necessity arises, and this will happen if all the depositors apply for compensations, the fund will raise nearly 20 million manats from the Central Bank.