Azerbaijan, Baku / Trend , corr I.Khalilova / The National Bank of Azerbaijan (NBA) plans to establish an insurance fund for public savings.
Natiik Abdullayev, Head of the Baku Office of the German Bank for Development KfW, reported that €5mln will be allocated for the initial capitalization of the Fund and €1mln will be allocated for incidental expenses once of the financing agreement has been signed. During her recent visit to Azerbaijan, KfW Vice President, Doris Kern, met with Elman Rustamov, Head of the NBA, and promised to accelerate the agreement to Azerbaijan, he stated.
Last year KfW and the National Bank of Azerbaijan signed a memorandum on the results of co-ordination of a concept on the establishment of an insurance fund for public savings. The Concept outlines the implementation of the Fund
In compliance with the existing Law on Insurance of Community Deposits, the Fund will also be formed at the expense of a lump sum and calendar payments of its member-banks. The insured amount of the savings within the Fund will be AZN 4,000. From 2008 the sum will be increased to AZN 6,000 and AZN 8,000 after 2010.