Azerbaijan, Baku / Trend corr I. Khalilova / German Development Bank of KfW will send the second consultant to Azerbaijan Deposit Insurance Fund on 13 August, according to the Executive Director of the Fund, Azad Javadov. The consultant will assist to the Fund in development of internal documents necessary for its operation.
According to Javadov, experts of the bank will visit Azerbaijan every month in order to get familiar with organization of the activities and bringing the activities close to modern standards.
The short-term consultations are provided within the framework of additional funds allotted by KfW.
The first consultant was sent in July. He has already got familiar with the documents adopted by the Supervisory Board of the Fund and has submitted his recommendations.
The head of the Deposit Insurance Fund indicated on continuation of the negotiations on allocation of a €5mln loan by KfW for capitalization of the Fund and €1mln for accompanying measures. He hopes to receive the funds by the end of the year.
Azerbaijan Deposit Insurance Fund will start operating on 13 August. At the first stage the insurance reserves of the Fund will be formed at the expense of entrance and calendar fees of the member banks.
The single fees make up AZN 10,000, calendar fees which are paid each three months comprise 0.15$ of the daily remainder of the deposits.
In accordance with the Law on Deposit Insurance, deposits in the sum of AZN 4,000 will be covered by 1 January 2008, deposits in the sum of AZN 6,000 will be covered from 1 January 2008 to 1 January 2010 and deposits in the sum of AZN 8,000 will be covered from 1 January 2010.