Azerbaijan, Baku, Sept. 12 / Trend , I.Khalilova/
By late September, the Azerbaijan Deposit Insurance Fund (ADIF) expects the visit of consultants of KfW of Global Banking Development Solution to discuss the involvement of a brokerage company for asset management abroad, the Fund's Executive Director, Azad Javadov said.
"We plan to allocate the fund for short-term management of foreign banks, after receiving the loan from KfW in the amount of five million euros, targeting to capitalize the ADIF," said Javadov. "The loan agreement with the Bank was concluded, I believe that the domestic procedures have been completed by late September."
He did not rule out the possibility of attracting a subsidiary of Deutchebank - Deutsche Invest as a manager of the funds of the ADIF, which will be discussed with the consultants of the Fund. According Javadov, under the investment policy of the Fund, its funds can be placed in the high rating the securities of foreign banks and financial institutions with a rating "AAA".
At present, the fund's assets amount to 14.5 million manat and so far, he said, part of the funds have been placed in short-term government bonds and overnight in the U.S. Federal Reserve. The fund has already brought the portfolio of the overnight up to $4.855 million from $2.8 million at the beginning of the year.
"Short-term instruments of placing the funds make it possible to recall them at any moment, if they need the fund because of the bankruptcy of one of the member banks, although at present there are no such prerequisites," said Javadov.
Today, the members of the bank are 42 banks of 46 operating in the country. The remaining four banks due to the inadequacies of the Central Bank are still working with a limited license, not having access to receive deposits.
The ADIF launched its operations on Aug. 13, 2007. The second quarter, individuals' deposits in the member-banks of the fund is 1,885 billion manat, and insured deposits - 1,307 billion manat.
Do you have any feedback? Contact our journalist at: [email protected]