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Azerbaijan will not insure banks deposits earning over 18% per annum

06 November 2008 14:14 (UTC +04:00)

Azerbaijan Deposit Insurance Fund (ADIF)said deposits received by a bank at an annual yield of 1.8 times the discount rate set by the central bank are not eligible for insurance under the Deposit Insurance Law.
So, the commercial banks will not pay any commission fee to the ADIF for deposits earning more than 18% per annum.
Azad Javadov, Executive Director of ADIF, said there will be a decline in quarterly receipts from banks because some part of deposits carry over 18% interest rate.
As of October 1, ADIF achieved the regular calendar payments for the three main deposit currencies respectively made AZN 918 000 in the national currency, $911 000 in the USD and â‚¬153 000 in the euro.
The Fund has to date collected AZN 9.421 million in calendar payments, including membership dues.
The total amount of deposits put by individuals in the member banks reached AZN 1.731 billion, including the amount of uninsured deposits increased to AZN 268 million and the number of insured deposit holders increased to 1 275 540 people.
Azerbaijan Deposit Insurance Fund has been in operation since August 13, 2007 and has 38 bank members.