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Azerbaijani Deposit Insurance Fund Decreases Volume of Calendar Payments for Banks

Business Materials 10 April 2008 18:57 (UTC +04:00)

Azerbaijan, Baku, 10 April / corr. Trend I. Khalilova/ The Deposit Insurance Fund of Azerbaijan (ADIF) plans to decrease the volume of calendar payments from 0.6% to 0.5% in August, said Azad Javadov, the executive director of ADIF. At present, banks quarterly pay the Fund 0.15% of daily remains of deposits as a calendar payments, but it will be decreased up to 0.125%.

According to Law on Insurance of Deposits, the Fund will cover the deposits worth of AZN4,000 from 1 Jan 2008, AZN6,000 from 1 Jan 2008 up to 1 Jan 2010, and AZN8,000 from 1 Jan 2010. Banks are required to inform the client about the absence of covering from the Fund.

The volume of earnings of Fund, as per the results of 2007, makes up AZN3.640.381 including the payments of one-time fees by banks. About AZN665,800 worth of calendar payments have been transferred to the Fund which is by 9% more than the volume of 2007.

According to Javadov, the deadline for calendar payments by banks for a quarter expires on 10 April and some AZN1.7mln will be transferred to the fund on average.

ADIF launched its activities on 13 August 2007. At present, some 37 of 46 operating banks in Azerbaijan are the members of Fund.

The correspondent can be contacted at: [email protected]

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