Azerbaijani Deposit Insurance Fund Concludes Payment of Calendar Payments in 3Q

Business Materials 23 October 2008 12:52 (UTC +04:00)

Azerbaijan, Baku, 22 October / corr Trend I.Khalilova / The Azerbaijan Deposit Insurance Fund (ADIF) increased the amount of deposit portfolio by 7.7% to AZN 1.462bln in the third quarter of 2008, ADIF said. It was possible as result of completion of collection of calendar payments from 38 members in this period.

In this period, outstanding deposits increased from AZN 251mln to AZN 268mln, those insured through the Fund - from AZN 1.357mln to AZN 1.462mln.

The deposit portfolio of physical entities at the ADIF non-member banks rose from AZN 1.608mln in the second quarter to AZN 1.731mln in the third quarter.

As a result of the third quarter the Fund received calendar payments in the amount of AZN 918,000 (in the second quarter they summed up AZN 961,000), $911,000 ($1,072,000) and 153,000 euro (159,000 euro). Generally, over the quarter the ADIF received additional AZN 1,312,000.

With the consideration of one-time fee (AZN 10,000) at the moment of entrance to the ADIF Register, the total amount of revenues constituted AZN 8,897,000.

The number of insured depositors rose by 6.9% from 1,193,687 to 1,275,540.

ADIF commenced activity on 13 August 2007. From 1 January 2008 the ADIF increased maximally insured sum to AZN 6,000 and from 1 January 2010 it will be increased to AZN 8,000. According to the Law on Deposit Insurance, by 1 January 2008 the Fund completely covered deposits totaling AZN 4,000.

However, the insurance will not be referred to deposits, rate on which 1.8 times exceeds rate of National Bank of Azerbaijan (currently 12%), i.e., rate on the insured deposit can comprise 21.6%. While receiving such deposits, Banks must inform client about the absence of insurance.

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