Increase of rate on insured deposits in Azerbaijan to affect not only new deposits
Baku, Azerbaijan, Feb. 26
By Azad Hasanli - Trend:
Increase of the maximum interest rates on insured deposits to 12 percent by the Azerbaijan Deposit Insurance Fund of individuals (ADIF) also applies to deposits made prior to February 24, 2015, said the message of ADIF released Feb.26.
"All deposits made in banks before decision on rates from 10 percent to 12 percent, are now also considered fully insured," said the message. "In this regard, starting from February 24, banks will have to pay insurance and calendar fees to the fund."
Starting from February 24, the Azerbaijan Deposit Insurance Fund (ADIF) increased the maximum level of interest rate on insured deposits from 9 to 12 percent.
The maximum amount of insurance coverage for deposits in Azerbaijan is 30,000 manats.
The official exchange rate for February 26 is 1.0501 AZN / USD.
The total volume of deposits of individuals in the banking system of Azerbaijan as of January 1, 2015 was 7.188 billion manats, including the deposits in the national currency - 4.422 billion manats. During the fourth quarter, the deposits grew by 3.3 percent, in the national currency - by 0,029 percent and in foreign currency - by 8.96 percent.
ADIF started operating on August 13, 2007. At present, 43 of the 45 banks operating in the country are members of the fund.
Edited by CN
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