Azerbaijan Deposit Insurance Fund to Place Insurance Reserves into High-Rate Securities

Business Materials 10 August 2007 14:51 (UTC +04:00)

Azerbaijan, Baku / Trend corr I.Khalilova / Azad Javadov, the Executive Director of the Azerbaijani Deposit Insurance Fund, has stated that the primary capitalization of the Fund may be increased to AZN 1.8. This sum may be accumulated, thanks to non-recurring payments from each member-bank by AZN 10,000.

The insurance reserves of the Fund will be increased by AZN 7mln due to € 5mln credits which the German Bank of Development of KfW is planning to allocate for the Fund.

According to Javadov, in compliance with the legal system, the Fund may collect 5% from bank payments or AZN 50mln. Increasing payments yearly makes up 40% or 60%.

The capital of the Fund will be invested into State short-term bonds of the Ministry of Finance and the National Bank, as well as into securities of foreign countries for the efficient management of the budget of the Fund. The goal of the Fund is to allocate its budget in securities rating, Aftandil Babayev, the Deputy Manager stated.