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Azerbaijani Insurance Deposit Fund’s Members Extended

Business Materials 5 September 2008 14:53 (UTC +04:00)

Azerbaijan, Baku, 5 September / Trend corr. I.Khalilova / A new Nakhichivan Bank, which was granted with banking license in August, entered the Azerbaijani Deposit Insurance Fund (ADIF). As a result the Fund's members reached 38.

All bank- members pay AZN 10 nonrecurrent dues and are granted with membership license. The dues to foreign based banks' branches are not insured by the Fund and no compensations are paid.

Under the deposit insurance bill, the deposits in the sum of AZN 6,000 will be covered from the Insurance Fund dating 1 January 2008 and AZN 8,000 - dating 2010. At the same time, if deposit rates exceed the interesting rate of the National Bank of Azerbaijan (NBA) (15%), they are not insured or only 27% of the deposit may be insured.

Besides nonrecurrent due, the Insurance Fund is formed by means of calendar payments on 0.125% daily deposit rests. Banks' clients are free of payments for their deposits. Compensation may be issued in the case of insurance, i.e. while bank's operating will be stopped or it will go bankrupt. The depositor of the bank, which went bankrupt, may appeal to the Fund within a year, and Fund in its turn must pay compensation within 90 days. In any case, depositor has a right to be paid compensation within five years.

Fund stated operating on 13 August 2007.

On 5 September, the official currency rate is 0,8154 AZN/USD.

The correspondent can be contacted at: [email protected]

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