Azerbaijan, Baku, 12 June / Trend corr. I.Khalilova / KfW, the German bank of development, has submitted the project on a deal to allocate loan €5mln to the Azerbaijani Deposit Insurance Fund (ADIF) to capitalize the fund, Azad Javadov, Executive Director of ADIF, stated on 12 June /
According to Javadov, the document will be submitted to the government for consideration. A deal will be signed after the document is agreed upon.
Javadov believes that KfW funds will be invested into ADIF until 2008end. As a result, the fund capitalization will increase to AZN 15,000.
Another deal to render consultative services to ADIF will also be signed with the German bank. However, the consultants of the bank from the German organization, Global Banking Development Solution, have already developed a three years plan of arrangements for institutional development of the fund.
ADIF started its activity on 13 August 2007. At present, ADIF has 37 members out of 46 banks operating in Azerbaijan. Since 2008, ADIF increased the maximum insurance sum to AZN 6,000 and the sum will be increased to AZN 8,000 from 1 January 2010. Under the deposit insurance Bill, all investments with AZN 4,000 had been covered until 1 January 2008.
On 12 June, the official currency rate is 0,8184 AZN/USD
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