Baku, Azerbaijan, June 2
By Anvar Mammadov – Trend:
The Azerbaijan Deposit Insurance Fund (ADIF) significantly increased its authorized capital, ADIF Executive Director Azad Javadov told Trend.
“The government allocated 800 million manats to increase the ADIF’s capital. Under the agreement concluded with Azerbaijan’s Ministry of Finance, the Ministry issued promissory notes, which were transferred to the Fund. These are simple interest-free promissory notes with a validity of 10 years. If we don’t use them for 10 years, then at the end of the period, these funds will become capital. On the other hand, we can return these promissory notes to the ministry at any time and get cash in return,” said the executive director.
Moreover, currently, ADIF has its own funds in the amount of 800 million manats, he noted.
“These funds were formed thanks to the return of funds from liquidated banks. In total, the collection of funds in liquidated banks should bring ADIF 178 million manats. We have already returned 80 million manats out of this amount, and the remaining funds will also be collected in the future,” added Javadov.
As Chairman of the Board of Directors of Azerbaijan’s Financial Market Supervisory Authority (FIMSA) Rufat Aslanli said earlier, the current mechanism of raising funds for the Fund’s capitalization through the country’s Central Bank increases its obligations to the state. Therefore, FIMSA is developing mechanisms to increase the capitalization of ADIF.
The Azerbaijan Deposit Insurance Fund has been operating since August 13, 2007.