Azerbaijani population’s deposit insurance system should be changed

The deposit insurance system of the Azerbaijani population should be revised and changed, Chairman of the Management Board of VTB Bank (Azerbaijan) Yevgeniy Kirin said.

Kirin made the statement in Baku at the press-conference on the results of the first quarter of this year, Trend reports.

“The current insurance system sets the maximum level of rates, at which funds placed in the banks are insured. This measure was effective during the crisis of 2015-2016, which was absolutely justified,” he said.

“However, amid current conditions of macroeconomic stability, a stable exchange rate of the national currency and other key indicators in Azerbaijan, which are confirmed by international rating agencies, it is time for us to switch to the classical deposit insurance scheme, when the maximum insurance amount is set,” Kirin added.

“Thus, people will be more responsible while choosing the bank in which they intend to place deposits,” he added.

According to the law “On Full Insurance of Deposits”, during three years, deposits of the population, the annual interest rate for which does not exceed the maximum level set by the ADIF Board of Trustees, will be insured, regardless of the amount of the deposit.

The law on full deposit insurance covers the funds placed in banks under three percent (for deposits in foreign currency) and 15 percent (for deposits in manats).