BAKU, Azerbaijan, Oct. 5
By Fidan Babayeva – Trend:
The Azerbaijani Ministry of Finance will transfer 2.3 million manat ($1.3 million) to the account of the Agricultural Insurance Fund within 10 days, the Agricultural Insurance Fund told Trend.
“At the beginning of the year, the ministry planned to transfer five million manat ($2.9 million) to the fund's account, however, due to the revision of the state budget for 2020, the Cabinet of Ministers decided to revise the amount which will be transferred,” the fund said.
“An important point is that at the moment, the changes have been made in the charter, according to which part of the funds in the amount of four million manat ($2.3 million) will be transferred in the form of state securities,” the fund added.
“The Ministry of Finance will issue promissory notes in the amount of four million manat ($2.3 million), which the fund will be able to convert into the capital in case of liquidity risks,” the fund said.
“The Azerbaijani Cabinet of Ministers decided to increase the authorized capital of the Agricultural Insurance Fund from one million manat ($588,235) to nine million manat ($5.3 million) in 2019,” the fund said. "Some 1.7 million manat ($1 million) will be transferred to the fund's account in 2021."
Azerbaijani President Ilham Aliyev signed a decree on the application of the law "On agricultural insurance" and the creation of the Agricultural Insurance Fund - a non-profit legal entity that ensures the organization, development, and sustainability of the agricultural insurance system in Azerbaijan, as well as the formation of a governing structure and controls its activity on August 19, 2019.
The Azerbaijani Cabinet of Ministers approved the Charter of the Agricultural Insurance Fund on December 14, 2019.
The Charter includes the objectives of the activity, obligations, and rights of the fund, the fundamentals of its management, authorized capital, property, and financial activity, the procedure for drawing up and submitting audit and accounting reports, as well as other issues.
Today 21 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on Oct. 5)
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