Insurance coverage decrease in Azerbaijan applies to new foreign currency deposits (UPDATE)

Economy Materials 3 March 2016 18:09 (UTC +04:00)

Details added (first version posted on 12:59)

Baku, Azerbaijan, March 3

By Anvar Mammadov - Trend:

The decision taken by the Council of Trustees of the Azerbaijan Deposit Insurance Fund (ADIF) to lower upper limit of annual interest rate on the insured foreign currency deposits won't be applied to the deposits put in banks before March 2 this year, says Azad Javadov, the ADIF head.

Earlier, the upper limit of the interest rate on the insured foreign currency deposits was lowered from 12 percent to 3 percent, effective since March 1, 2016.

Javadov said March 3 at a press conference in Baku that if a client deposits funds in foreign currency in a bank at an interest rate exceeding 3 percent, the deposit will be insured until the expiry of the contract with the bank, provided that the deposit doesn't exceed 30,000 manats.

"At the same time, the clients can apply for changing terms of the contract with banks at any time," he added.

The upper limit of the annual interest rate on the insured national currency deposits remained unchanged at 12 percent.