Azerbaijan, Baku, June 5 / Trend , I.Khalilova/
Azerbaijan's parliament has approved amendments to the law on "Deposit insurance" to increase the maximum limit of insurance of bank deposits through the Azerbaijan Deposit Insurance Fund (ADIF) five times - up to 30,000 manats.
Since early 2008, compensation at 100 percent shall be paid, if the amount of deposit does not exceed 6,000 manats, and on Jan. 1 in 2010, it was expected to up the amount to 8,000 manats.
Due to the deepening global financial crisis, the Azerbaijani banks limited opportunities to attract financial resources from abroad, and to increase the capacity to attract inward investment, the government considered appropriate to increase the amount of compensation up to 30,000 manats for their stimulation.
Under the existing rules on the insurance, the deposits could not be covered, the rate of which hits 1.8 times the discount rate of the Central Bank of Azerbaijan (today it is two percent), i.e. the rate for the insured deposit of up to 3.6 percent . In the framework of monetary policy in the second half of 2008, the Central Bank's discount rate decreases, and in 2009 it had reached a three-phase two percent. In this regard, virtually all the deposits at that time acquired the status of uninsurable, because in this period, the average rate was 13-14 percent.
Under the amendments to the Law, the Central Bank, together with the Supervisory Board of the Fund will determine the maximum annual rate for deposits to be insured.
These amendments will apply to deposits taken by banks, as for Jan. 1 2009
The Foundation began its activities on August 13 2007 and today has 42 members.
In late 2008, the amount of deposit portfolio covered through the ADIF of the population, amounted to 1.373 billion manat. In comparison with III quarter, insured deposits fell by 6.09 percent.
The decline in calendar payments associated with the reduction of deposits in the banks of the country, what is happening on the backdrop of the global crisis. Calendar contributions are made by banks of the funds until the revocation of banking license.
Calendar payments members make up 0.15 percent of the average daily balance of deposits in manat for the previous quarter, with the third quarter of 2008 - 0,125 percent.
During this period, the uncovered deposits fell from 268 million to 108 million manat, insured through the fund - from 1.462 million manat to 1.373 million manat.
Portfolio of individual deposits in the banks-members of the Fund decreased from 1.731 million manat in the third quarter of up to 1.711 million manat.
As for April 1 2009, individuals' deposits in banks was 1 746.862 million manat, the amount of insured deposits - 1 97.698 million manat. In the first quarter, 37 percent of deposits are not subject to insurance. Compared with the fourth quarter, deposits at banks increased by two percent, the same amount of insured deposits fell by 20 percent
On June 5, the official exchange rate is 0.8036 manat to $1.
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