Validity period of full deposit insurance in Azerbaijan extended
Baku, Azerbaijan, Feb. 19
By Elchin Mehdiyev, Azad Hasanli - Trend:
The Azerbaijani parliament at a plenary session on Feb. 19 approved amendments to the “Law on Full Deposit Insurance”, which provide for the extension of its validity period for another year, Trend reports.
In accordance with the existing law, full insurance of deposits in the country must be carried out until March 2019.
The law on full deposit insurance covers funds placed in banks at an interest rate of 3 percent (for deposits in foreign currency) and 15 percent (for deposits in manats).
Before the introduction of the mechanism of full deposit insurance in Azerbaijan, only 24.3 percent (2.3 billion manats) of deposits were considered compensated. Now, this figure is 77 percent (6.4 billion manats). At the same time, 24 percent (1.5 billion manats) of the number of compensated deposits are deposits worth up to 30,000 manats.
The decision on full deposit insurance entered into force on March 4, 2016.
Earlier, deposits up to 30,000 manats were considered as insured. The only condition was that the interest rate on the deposit shouldn’t exceed the limits set by the Azerbaijan Deposit Insurance Fund.
In accordance with this, deposits of the population in national currency at a rate higher than 15 percent per annum and in foreign currency at a rate higher than 3 percent per annum aren’t covered by insurance.
The Azerbaijan Deposit Insurance Fund started operating August 13, 2007.