Azerbaijan, Baku, August 2 / Trend A. Akhundov /
The decrease in the interest rate ceiling on insured deposits in Azerbaijan will have no negative impact on the growth of the deposit base of banks, deputy chairman of the Central Bank of Azerbaijan (CBA) Khagani Abdullayev said at a press conference on Friday.
Azerbaijan Deposit Insurance Fund (ADIF) will not insure physical entities' deposits made in the country's banking system at a rate of more than 10 percent from August 1.
"Today, the individuals invest their money in banks at an average rate of 8-9 percent," he said. Therefore, we do not see any risks."
The ADIF board of trustees made a decision of lowering the ceiling on insured deposits from 12 to 10 percent in July. In this case, the fund has not changed the maximum level of insurance coverage for one contribution - at 30,000 manat.
This decision will apply only to those deposits to be invested after August 1. The current contracts with the investors will remain in force until the end of their validity.
ADIF started operating on August 13, 2007. Today, members of the fund are 42 banks out of 43 operating in the country.
The official exchange rate is 0,7845 AZN/USD on August 3.