Azerbaijan reduces interest rate on insured deposits fourfold
Baku, Azerbaijan, March 1
By Azad Hasanli - Trend:
The upper limit of the interest rate on insured deposits in foreign currency has been decreased from 12 percent to three percent since March 1, 2016, the Azerbaijan Deposit Insurance Fund said March 1.
The corresponding decision, agreed with the Central Bank of Azerbaijan (CBA), has been taken by the Board of Trustees of the fund at an extraordinary meeting.
The upper limit of the annual interest rate on insured deposits in the national currency remained unchanged at 12 percent.
According to the law "On the full deposit insurance", which has entered into force since March 1, 2016, the insurance covers all deposits in member-banks of the fund at an interest rate not exceeding three [for deposits in foreign currency] and 12 percent [for deposits in national currency], respectively, regardless of the amount of the deposit.
However, if the insured depositors have deposits with an interest rate more than three [for deposits in foreign currency] and 12 percent [for deposits in national currency] as of March 1, 2016, respectively, the existing agreements may be changed on the basis of their appeal for full insurance of their deposits.