Azerbaijan to decrease the insured deposits compensation by 6 times

Business Materials 14 January 2012 14:39 (UTC +04:00)

Azerbaijan, Baku, Jan 14 /Trend N.Ismayilova/

Azerbaijan Deposit Insurance Fund (ADIF) will announce the winner on the creation of a software that will reduce the terms of payments in March, executive director of the Fund Azad Javadov told Trend.

"ADIF announced a tender for the development of software that will reduce the repayment terms of insured deposits in the case of bank bankruptcy in 2011. The fund has already received three bids, evaluation of which will be held in February." Javadov said.

According to the current legislation of Azerbaijan the term of repayments is 90 days since the date of depositor's apply to bank or fund. The main goal of ADIF is to reduce this period to 14 days.

The tender procedure will be held on February 3, 2012.

Information System of the Fund shall include the following modules and interfaces: a module of the operating system (including the administrator and user modules), module on report creation, module for the software works in member banks and the module for the software in agent banks.

ADIF began operations 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.

There wasn't any case of bank failure during the operation of the Fund, so ADIF repayment wasn't implemented yet.