Azerbaijan, Baku, May 5 / Trend , N.Ismayilova/
On May 8, the Azerbaijani Parliament is planning to consider amendments to the law on deposit insurance, according to which the maximum amount of insurance compensation through Azerbaijan Deposit Insurance Fund (ADIF) will be increased from 8,000 to 30,000 manats, head of the standing Parliamentary Committee on economic Policy Ziyad Samadzade said on May 5.
Since early 2008, compensation in the amount of 100 percent is paid in term if the deposit sum does not exceed 6,000 manats. The sum is expected to be increased to 8,000 manats since Jan.1, 2010. Under the law, deposits in the sum of 4,000 were fully covered from the Fund till Jan. 1, 2008.
In accordance with the Law on Insurance deposits, new deposits, the rate of which exceeds 1.8 times the rate of the Central Bank of Azerbaijan (CBA). CBA's rate is three percent. The rate of insurance deposit may reach 5.4 percent. Banks have to inform clients of absence of cover funds from the Insurance Fund.
Compensation may be issued when the insured event, i.e. in liquidation or bankruptcy, court's decision on application of moratorium on implementation of commitments on deposits. Investor of failed bank may apply to the insurance fund during a year, which has to pay compensation within 90 days after submission. In any case, investor has a right to get compensation within five years.
The Found began its activity on Aug. 13, 2007.
On May 5, the official exchange rate is 0.8034 manat to $1.
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