Azerbaijan Deposit Insurance Fund increases maximum interest rate on protected deposits
BAKU, Azerbaijan, May 7
By Eldar Janashvili - Trend:
The Board of Trustees of the Azerbaijan Deposit Insurance Fund (ADIF), in consultation with the Central Bank of Azerbaijan and upon the recommendation of the country’s Financial Stability Council, decided to increase the maximum annual interest rate on protected deposits in national currency from 10 to 12 percent from June 1, 2020, Trend reports citing ADIF on May 7.
The maximum annual interest rate on protected deposits in foreign currency in the ADIF’s member banks remains at around two and a half percent.
Depositors do not pay deposit insurance, and insurance premiums are paid only by banks.
From July 1, 2019, the maximum interest rates on insured deposits in manat decreased to 10 percent. On deposits in foreign currency, the maximum interest rate for insured deposits decreased to 2.5 percent. Before, it was at the level of three percent.
The national law on full deposit insurance was adopted on January 19, 2016, according to which all deposits were fully insured for a period of three years from March 4, 2016, regardless of the amount within the annual interest rate, that is three percent in foreign currency and 15 percent in national currency, established by the ADIF’s Board of Trustees. Then, on February 19, 2019, on the basis of legislative amendments, this period was extended for another year, until March 4, 2020. On March 5, 2020, the head of state signed a bill to extend the term of full deposit insurance until December 4, 2020.
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