Azerbaijan Deposit Insurance Fund’s Assets to Exceed AZN 7mln by July 08
Azerbaijan, Baku, 13 June / Trend corr I. Khalilova/ "Azerbaijan Deposit Insurance Fund ( ADIF) is expecting its deposit portfolio to increase by AZN 2.2-2.3mln in the second quarter of 2008," ADIF chief executive Azad Javadov said on 12 June. That will be possible due to completion of calendar payments collection from 37 ADIF members as a result of the 2nd quarter of 2008.
"Including one-time payments (AZN 10,000) which the banks pay when getting registered in the Insurance Fund, the revenues may amount to AZN 7.7mln by the beginning of July, while in the first quarter of 2008 they totalled AZN 5.549mln," Javadov said. Individuals' deposits in the member banks made up AZN 1,497,79mln. Outstanding deposits amounted to AZN 220.3mln, deposits insured via the Fund - AZN 1,277,49mln. As a result of the first quarter, AZN 841,000, $1,094,000 and 130,000 euro of calendar payments were transferred to the Fund.
Insured depositors numbered 1,124,804 people.
Fund commenced activities on 13 August 2007. Since the beginning of 2008, Fund increased maximal insured sum to AZN 6,000 and from 1 January 2010 it will ascend to AZN 8,000. According to the Law on Deposit Insurance, the Fund was completely covering deposits in the sum up to AZN 4,000 by 1 January 2008.
The deposits which rate is 1.8 times more than that of National Bank of Azerbaijan (15%) will not be insured. That means insured deposit rate may be up to 27%. When receiving such deposit, bank must inform the client about lack of cover funds at the Fund.
On 13 June, official exchange rate totalled 0.8189 AZN/USD.
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