17:28 - 4.12.2019

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December 4, Fineko/abc.az. Full deposit insurance will be canceled in three months (the probability of extension amid the dissolution of Milli Majlis is small).

ABC.AZ reports that expert Ekrem Hasanov made the above-said statement in his social network account.

He noted that Azerbaijan has a system of full deposit insurance for 3 years since 4 March 2016. Last year, the term of this system was extended by another 1 year, that is, until 4 March 2020. Within this system, deposits of individuals are insured in full, provided that the annual interest rate of the deposit in national currency is no more than 10%, and the annual interest rate of the deposit in foreign currency is no more than 2.5%.

Hasanov also explained how deposit insurance will be carried out after 4 March 2020: "According to Article 5.2 of the Law on Full Deposit Insurance, deposits insured in each bank closed after 4 March 2020 will be compensated with the condition that they do not exceed 30,000 manats. For example, on 1 August 2019 a citizen made a deposit at the bank in the amount of 100,000 manats for 1 year period with 10% per annum.

According to the current procedure, the deposit is fully insured. That is, if the bank is closed until 4 March 2020, the deposit will be fully compensated. But if the bank is closed after 4 March 2020, the depositor will be compensated only 30,000 manats. Will the law be extended? The probability is low. As the parliament is dissolved. The new parliament will probably be assembled for the first session after 4 March."