On extension of blanket guarantee

16-03-2020

15 March 2020, Baku: The President of the Republic of Azerbaijan appealed to the Milli Majlis to extend full insurance of all protected deposits irrespective amount for 9 months again, and the newly elected Milli Majlis made amendments to the Law on Full Deposit Insurance as one of the issues under discussion at its first meeting on 13 March 2020. 

Re-extension of the Law on Full Deposit Insurance will allow to more reliably protect interests of depositors and creditors, maintain a stable and healthy financial sector and boost confidence in the banking sector.

The amendment made to the Law will take effect upon approval by the President and the blanket guarantee period for all protected deposits with the interest rate established by the Board of Trustees of the Deposit Insurance Fund as of the date of attraction (the interest rate cap for national currency denominated deposits 10% and for foreign currency denominated deposits 2.5%) will be rolled over by participating banks of the Fund with banking licenses from 4 March 2020 to 4 December 2020 irrespective their amount, currency and banks’ financial standing.