Azerbaijan develops mechanism of returning population’s deposits in AzSSR’s Savings Bank

Business Materials 9 January 2012 19:54 (UTC +04:00)

Azerbaijan, Baku, Jan.9 / Trend N.Ismayilova /

Azerbaijan developed a mechanism to return population's deposits in the Savings bank of Azerbaijan before Jan.1, 1992, MP Ali Masimli told Trend on Monday.

"We expect concrete actions from the cabinet of ministers and from the finance ministry. Draft law on ensuring return of deposits to the population, mechanism of return, letter of explanation regarding some points of the draft law, as well as draft law related to changes which are necessary for the current legislation in order to ensure return deposits, are already developed by the Parliamentary committee on economic policy," Mr Masimli said.

Earlier, the finance minister Samir Sharifov said that in 2012 Azerbaijan may find financial means to ensure return of deposits in the Savings Bank of Azerbaijan before Jan.1, 1992. The minister said it will be possible after the development of appropriate draft law.

Because of the complexity of the process of indexation of population's deposits, the issue of these deposits was postponed several times. A working group was formed to prepare this process in the parliament. This process may start only after the development of the mechanism and approval of the law "On indexation of population's deposits in the Savings Bank of AzSSR before Jan.1, 1992".

Indexation issue was raised in the parliament several times, however without the decision of the State commission, created by Prime-Minister Artur Rasizadeh in 2005, the return of the deposits cannot be activated. A coefficient acceptable for Azerbaijan must be determined first. Without the mentioned mechanism, funds from the budget cannot be allocated, although 50 mln. Manta were put on the state budget to start off the process of deposits' indexation.

According to the previous version of the draft law, it was planned to carry out indexation of deposits within 8-10 years, and security papers were among the usable tools.

Finance minister Samir Sharifov said the experience of neighboring countries has shown the inefficiency of this method of deposits indexation, as it leads to the depreciation of money.

Parliamentary speaker Ogtay Asadov supported Sharifov's proposal on this issue's solution in short term of one or two years.

From all the CIS countries only Kazakhstan, Kyrgyzstan and Belarus ended deposits' indexation.

Currently deposits' indexation is underway in Russia, Ukraine and Moldova. Each of these countries carries out this process differently. Thus, in Russia one Soviet ruble accounts for $0.0033, in Kazakhstan - $0.006 (or 150 rubles accounts for $1), Ukraine - $0.009, Belarus - $0.33, Moldova - $0.2, Kyrgyzstan - $0.024.