Azerbaijan, Baku, 12 July /corr. Trend I.Khalilova / From the third quarter, the calendar payments to Azerbaijan Deposit Insurance Fund (ADIF) will be paid under 0.125% of daily remains on deposits as compared to the present 0.15%, ADIF Executive Director Azad Javadov said on 12 July. As a result, the annual amount of calendar payments will decrease from 0.6% to 0.5%.
"New tariffs will be introduced from August because the law indicates the possibility of reducing the tariffs after annual activity," Jafarov said.
ADIF commenced activity on 13 August 2007. At present, 37 of 44 banks acting in Azerbaijan are members to the Fund.
According to the Law on Deposit Insurance, 1 January 2008 the Fund completely covered deposits totaling AZN 4,000, from 1 January 2008 to 1 January 2010 - AZN 6,000 and from 1 January 1 2010 - AZN 8,000. However, the insurance will not be referred to deposits, rate on which 1.8 times exceeds rate of National Bank of Azerbaijan (today 15%), i.e., rate on the insured deposit can comprise 27%. While receiving such deposits, Banks must inform client about the absence of insurance.
As a result of the first quarter of 2008, calendar payments totaling AZN 841,000, $1 094 and €130,000. The results of the second quarter will be known in the nearest future.
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