Law on Full Deposit Insurance has expired in Azerbaijan

17:47 - 5.04.2021


April 5, Fineko/abc.az. In order to strengthen the confidence of depositors in the banking system, the Law on Full Deposit Insurance was adopted on 19 January 2016. The law expired on 5 April 2021.

ABC.AZ reports that the updated Law on Full Deposit Insurance has entered into force.

In the updated law, the amount of compensation for protected deposits of individuals was increased from 30,000 up to 100,000 manats. The amount of compensation for funds in the bank accounts of individuals engaged in entrepreneurial activities is set at 20,000 manats, and the funds held in the deposit accounts of notaries belonging to individuals are fully insured.

The Law on Full Deposit Insurance was passed on 19 January 2016 for the period of 3 years. The goal was to prevent the possible withdrawal of deposits from banks after the double devaluation of the manat in 2015. Since 4 March 2016 the insurance system covers the entire amount of the population's contribution. On 4 March 2019 Milli Majlis extended the validity of the law for 1 year, on 13 March 2020 for another 9 months, and in December 2020 for 4 months.

 

Other news