Azerbaijan, Baku, November 13/ Trend , corr I. Khalilova/ "It would be expedient to extend limit of guaranteed bank deposits through Azerbaijan Deposit Insurance Fund ADIF) by two or three times in an attempt to increase confidence towards Azerbaijan's bank sector under condition of global financial crisis," Dunyamin Khalilov, member of parliamentary Commission on Economic Policy said at the discussions over 2009 public budget.
MP offered to increase the amount of deposit covered by ADIF from current AZN 6,000 to AZN 20,000-AZN 25,000.
The National Bank of Azerbaijan (NBA) is holding consultations with banks on this issue. Since the beginning of 2008, the maximum rate of insured amount increased to AZN 6,000. It is expected to reach AZN 8,000 from January 1, 2010. According to Insurance of Deposits, all deposits worth 4,000 were covered until January 1, 2008.
[Kazakh government has already taken measures to increase the amount of guarantee from 700,000 tenge (over $5,800) to 5mln tenge (over $42,000), which enables to cover 99% of customers.]
Meanwhile, deposits, rates of which exceed rate of NBA (today 10%), will not be covered by ADIF insurance. In other words, while receiving deposit with rate of over 18%, banks must inform customers of absence of payment from ADIF.
Including payment of one-off fees (AZN 10,000) by banks while being registered by ADIF, the total volume of assignments totals to AZN 8,897,000 with the number of insured deposits totaling to 1,275,540.
Fund began on August 13, 2007.
Official exchange rate for November 13 is 0,8104 AZN/USD.
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