Guaranteed Bank Investments Volume May be Increased in Azerbaijan
Azerbaijan, Baku, 24 October / Trend , corr. I.Khalilova /"The National Bank of Azerbaijan (NBA) holds consultations with bank community of the country to increase the volume of guaranteed bank investments through the Azerbaijani Deposit Insurance Fund (ADIF), Elman Rustamov, NBA Chairman of the board, said.
"This will consolidate the confidence to the banking system of the country," Rustamov said.
Since early 2008, the maximum insurable sum was increased to AZN 6,000, and the figure will comprise AZN 8,000 since 1 January 2010. Under the Bill on Insurance of investments as for 1 January 2008, the investments on AZN 4,000 sum were completely covered from ADIF.
The bill will not cover the investments with the rate 1.8 times exceeding that of NBA - 12%, i.e. the insurable investment rate may comprise 21.6%. Banks taking such investments must inform clients of the absence of cover by the Insurance Fund.
Azad Javadov, ADIF Executive Director, said that the Supervision Council must put forward a legislative initiative to the Parliament in order to change the volume of insurable sum through the fund.
"The bank community should hold consultations to develop proposals into the Bill on Insurance of investments. The sum of guaranteed investments will be changed in the case of necessity," Javadov said.
(The Kazakh Government has already taken the measure to increase the sum of guarantee from 700,000 tenges (over $5,800) to 5mln tenges (over $42,000), which will cover the client base by 99%)
Taking into consideration one-time payment (AZN10,000) while joining the Azerbaijani Insurance Fund, the total volume of payments is AZN 8,897,000 with 1,275,540 insurable investors number.
ADIF launched operating on 13 August 2007.
On 24 October, the official currency rate is 0,8111 AZN/USD.
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