Baku, Azerbaijan, June 2
By Anvar Mammadov – Trend:
Changing the upper limit of the interest rate on insured deposits is not directly dependent on the changes in the discount rate, Azad Javadov, executive director of the Azerbaijan Deposit Insurance Fund (ADIF), told Trend.
He said the maximum interest rates on insured deposits may be revised in case of significant increase or decrease of commercial banks’ interest rates on deposits.
“According to previous legislation, our maximum interest rates depended on the discount rate of the Central Bank of Azerbaijan,” Javadov said, adding there is no such dependence now.
“After 1Q2017, we held a monitoring and noticed that there were no significant changes in interest rates on bank deposits. So we left the maximum interest rates unchanged,” he noted.
Javadov added that ADIF will analyze the results of the next monitoring, to be held after 1H2017, and if necessary, decide on changing the upper limit of interest rates on insured deposits.
The Azerbaijan Deposit Insurance Fund has been operating since August 13, 2007.
The upper limit of the annual interest rate on insured deposits of individuals in foreign currency is 3 percent. The maximum interest rate on individuals’ manat deposits covered by insurance is 15 percent.