Azerbaijan, Baku, July 4 / Trend A. Akhundov /
Today, the Compulsory Insurance Bureau has accumulated 7.5 million manat, Executive Director Elhan Guliyev told media today.
"These funds are on deposit in eight Azerbaijani leading banks with an average interest rate of eight percent per annum," Guliyev said.
He added that in the future, the bureau will review the tools of investing their funds.
"However, taking into account that the interest rates offered by local banks will be beneficial to the bureau in the next 1-2 years, it is still going to work with them," Guliyev said.
Currently, the bureau places its funds in deposit accounts of PASA Bank, Xalq Bank, Bank of Baku, DemirBank, Access Bank, Bank Standard, Unibank and the AG Bank. The state short-term bonds may be considered among other instruments in the domestic market.
In the future, the bureau does not rule out the opportunity of placing the funds in foreign markets. In any case, other tools will not be considered until the bureau's portfolio on compulsory insurance reaches 10 million manat.
The bureau was established in accordance with the requirements of the new law on "Mandatory types of insurance."
The law regulates four types of compulsory insurance - real estate, liability of owners of motor vehicles, passenger insurance, liability insurance while exploiting real estate. Insurance companies have begun using this law since December 16, 2011.
The founders of the bureau are six companies - Pasa Sıgorta, Atesgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance.
AzSıgorta, Alfa Sıgorta, Azerbaijani State Insurance Commercial Company, Meqa Sıgorta, İpek Yolu Sıgorta and Azerbaycan Senaye Sıgorta joined the bureau later.
The official exchange rate is 0.7856 AZN/USD on July 4.