Azerbaijan reduces percentage ceiling on insured deposits to 10%
Azerbaijan, Baku, July 25 /Trend, A. Akhundov/
From August 1, the Azerbaijan Deposit Insurance Fund (ADIF) will not insure individual deposits in Azerbaijani banks at a rate of more than 10 percent, executive director of the fund Azad Javadov told Trend.
Accordingly, in case of an event which requires insurance (bank failure), compensation will not be paid to insured depositors on bank deposits at a rate exceeding 10 percent.
According to him, the ADIF board of trustees decided during its last meeting to reduce the ceiling on insured deposits from 12 to 10 percent. The fund has left the maximum level of insurance coverage for one contribution unchanged at 30,000 manats.
"The change that will enter into force on August 1 is the result of the continuing decline of rates on deposits in the country," Javadov said.
Currently, deposits placed in ADIF member banks at an annual interest rate of over 12 percent are not insured by the fund, and compensation is not provided for them.
ADIF started its activity on August 13, 2007. Today, the members of fund are 42 banks operating in 43 countries.
The official exchange rate on July 25 is 0.7843 AZN / USD.