KfW Presented Agreement to Azerbaijan on Financing Deposit Insurance Fund

Business Materials 16 January 2007 18:50

The Head of the KfW Baku Office, Natig Abdullayev, informed Trend that the negotiations between the German Development Bank KfW and Government of Azerbaijan on the contract on financing the creation of the Fund for Insurance of Deposits of Physical Persons will begin after the law On insurance of deposits of population comes into force.

The Parliament of Azerbaijan adopted a document in December.

According to the law, the insured deposit equals AZN 4,000. After 2010, this amount will increase to AZN 8,000. Last year, the KfW and National Bank of Azerbaijan concluded a Memorandum in result of the agreement on creation conception of the Fund.

After the confirmation of the law, the German Bank intends to present a contract to the Government of Azerbaijan. The contract envisages the allocation of в'¬5 mln credit for the initial capitalization of the fund and в'¬1 mln grant for accompanying measures.