Azerbaijan Deposit Insurance Fund Begins Capitalization
Azerbaijan. Baku / Trend corr I. Khalilova / The recently established Azerbaijan Deposit Insurance Fund has begun the formation of its initial capital on 13 August. The Executive Director of the Fund, Azad Javadov, reported on 13 August that over 20 banks and 30 member banks of the Fund have paid the one-time fees on the first day (AZN 10,000 for each bank). He anticipates that the remaining banks will not delay payment.
Quarterly calendar payments (0.15% of daily remainder from deposits) will be paid next month. According to Javadov's forecasts, initial capitalization could comprise AZN 1.8mln. Taking into account the credit from the German Development Bank KfW which plans to allot €5mln for capitalization of the Fund, the insurance reserves will increase to AZN 7mln.
Javadov believes that in accordance with the legislation, the Fund will be able to save up to 5% of all bank deposits (by 1 July the deposits amounted to over AZN 1bln) or AZN 50mln. In future when bank deposits grow, the savings limit will also increase, the head of the Fund said. Annual deposit growth comprises 40-60%.