Baku, Azerbaijan, March 6
By Anvar Mammadov – Trend:
The Azerbaijan Deposit Insurance Fund (ADIF) plans to significantly increase its authorized capital in 2017, ADIF Executive Director Azad Javadov said in an interview with Trend.
Javadov noted that this step is envisaged in the decree of Azerbaijan’s President Ilham Aliyev on approval of the draft state budget for 2017.
The government should allocate 800 million manats in order to increase ADIF’s capital, he said adding that ADIF has already concluded a relevant agreement with Azerbaijan’s Ministry of Finance.
Under the agreement, the ministry will issue notes, which will be given to ADIF, noted Javadov adding that these will be interest free promissory notes with a validity period of 10 years.
“If we don’t use them within 10 years, after the expiration these funds will turn into capital. On the other side, we can return those notes to the ministry at any time and obtain money in return,” added the executive director.
Rufat Aslanli, chairman of Board of Directors of Azerbaijan’s Financial Market Supervisory Authority (FIMSA), said previously that the current mechanism of attracting funds for ADIF’s capitalization through the country’s Central Bank (CBA) increases its liabilities to the state. Therefore, FIMSA is developing mechanisms to increase ADIF’s capitalization.
ADIF started to operate on Aug. 13, 2007.