BAKU, Azerbaijan, Apr. 6
By Nargiz Sadikhova - Trend:
Kazakhstan Deposit Insurance Fund (KDIF) has approved maximum recommended interest rates on deposits denominated in national currency (tenge) for May 2020 and reconsidered rates on various groups of deposits having taken into consideration change of the base rate, Trend reports with reference to KDIF.
Kazakhstan’s National Bank announced a decrease of the base rate from 12 percent to 9.5 percent which is valid starting from Apr. 6, 2020. In this regard, KDIF decreased maximal recommended remuneration rates of non-time and short-term deposits, which will enter into force on May 1, 2020.
Change of the base rate is related only to maximal rates for May and thus, April rates remained the same.
“At the same time, in order to prevent a sharp decrease in the profitability of short-term deposits and to switch to a smooth decrease in rates of these deposits in the near future, KDIF increased the spreads to a lower base rate,” the KDIF said.
Thus, maximal remuneration rate on non-time deposits denominated in tenge will be 12 percent. Rates on time deposits placed for three and six months with replenishment option will be 12 percent, for those without replenishment options will be 12.5 percent.
Rates on savings deposits placed for three and six months with replenishment option will be 13 percent, and 13.5 percent if the replenishment option is not available.
Updated rates comply with the principles of differentiation of deposits: a short-term deposit rate with replenishment below rates of those without replenishment by 0.5 percentage points.
Rates on long-term deposits for May 2020 did not change, with exception of savings deposits without replenishment option the rate of which decreased to 14.7 and 14.8 percent.
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