Nearly all deposits placed in Azerbaijani banks in 2012 at a rate below 12%
Azerbaijan, Baku, Feb. 19 / Trend, A. Akhundov /
In 2012, nearly all retail deposits were placed in Azerbaijani banks at a rate below 12 percent, executive director of the Azerbaijan Deposit Insurance Fund (ADIF) Azad Javadov told Trend.
"Compared with 2011, in 2012, the volume of deposits made by individuals increased by 28 percent; insured deposits increased by 45 percent. Approximately 99 percent of insured deposits in 2012 were placed at a rate lower than 12 percent. The volume of funds invested at a rate higher than 12 percent reduced by two per cent," Javadov said.
According to him, this positive trend was observed, despite the reduction in the number of banks caused by the bankruptcy of Royal Bank.
"The total deposits of individuals in member banks of the fund in 2012 amounted to 4.782 billion Manat. Of this amount, 3.253 billion Manat are insured deposits, accounting for 68 percent of total deposits," Javadov said.
According to him, the number of contributors, as of the end of last year, amounted to 6.449 million people, 94 percent of which are insured (6.08 million).
"In 2012, 57 percent of deposits were invested in manat, five percent - in euros, 38 percent - in dollars," Javadov said.
Currently, deposits in ADIF member banks at an annual interest rate of over 12 percent are not insured by the fund and compensation for them is not provided. Currently, the maximum level of insurance coverage for one deposit is 30,000 manat.
ADIF began operations on August 13, 2007.
Today, ADIF members are 42 banks of 43 banks operating in the country.
The official exchange rate for Feb. 19 is 0.7847 AZN / USD.