Azerbaijan, Baku, Jan.24 / Trend A.Akhundov /
In order to prevent significant inflation rise in Azerbaijan as a result of return of soviet deposits to population the government when paying compensations will use methods which will not negatively affect macroeconomic stability in the country and sustainability of finance and banking system, member of the economic policy committee of the Azerbaijani parliament Ali Masimli told Trend on Tuesday.
A bill on deposits indexation is prepared by the parliamentary committee.
Return of population's deposits in the Savings bank of AzSSR till Jan.1, 1992 will require 1.9 billion manat (about $2.4 billion). Return of deposits will be held in 3 stages and will take 6 years.
"Allocation of additional $300 million per year is possible during the period of return of deposits. This amount is just 1.7 per cent of the annual increment of the monetary reserves of Azerbaijan. As this amount is just 1.5 per cent of the population's expenditure in 2010, 1.6 per cent of retail turnover of the country and is less than 2 per cent of money supply in circulation it cannot be source of significant inflation," Mr Masimli said.
He said in order to eliminate difference in the sum caused by inflation and paid to depositors at different stages of the process the bill starting from the second stage envisages annual indexation of deposits taking inflation into consideration.
During the first year of the first stage the bill envisages return of deposits of less-well-off sections of population who were born before 1935, martyrs' families, disabled war veterans and invalids of the first group, and during the second year - deposits of the Karabakh war veterans and those who were born before 1940.
During the first year of the second stage indexation of deposits of those who were born before 1945 is envisaged and during the second year - of those who were born before 1950 and their heirs.
During the third stage indexation of deposits of those who were born after 1950 and their heirs will be carried out.
"The last category is small that's why return of their deposits will require less than a year," Mr Masimli said.
He noted in the 6th year on the basis of decision of the special commission return of the deposits of those who lost or didn't get savings book as well as those who for some reasons didn't get compensation is envisaged.
"This will require time, since every second from 10 depositors may have such problem. Information on them will be collected after the law comes into force and payments will be made in the end," Mr Masimli said.
The official exchange rate is 0.7862 AZN to $1 on Jan.24
