ADIF to place assets in national currency
Azerbaijan, Baku, Sept. 28 / Trend , N.Ismayilova /
The Azerbaijan Deposit Insurance Fund (ADIF) will give preference to local currency when placing assets, the ADIF Executive Director Azad Javadov told journalists.
"Today the fund's total assets amount to 37 million manat and are expected to receive an additional 2.5 million manat during the fourth quarter, as a calendar payment from the ADIF member banks," he said.
Today, some 19 million manat were placed in government securities.
Earlier, Deutsche bank- Deutsche Invest received control of over 5 million euros, which the German Development Bank KfW invested in the capitalization of ADIF and $10.7 million of the ADIF's own funds. According to ADIF investment policy, funds may be deposited at high security rates in foreign banks and financial institutions with a rating of "AAA."
"We plan to continue holding our funds in manat given that 48 percent of total deposits were in manat, about 43 percent in dollars, and about 8 to 9 percent in euros," Javadov said.
He said that following receipt of the calendar, payment will be made in manat.
"Depositing the majority of assets in manat can be explained by the rules - that if deposits are placed using multiple currencies, then compensation is paid out in manat. If a deposit is made using a single currency, either in dollars or euros, then payment is carried out in the appropriate currency," he said.
The ADIF began operating on Aug. 13, 2007.
Today, 43 out of 44 banks operating in the country are members of the Fund. One bank is still working with a limited license, not having access to receive deposits due to non-compliance with requirements of the Central Bank.