Country leadership approves amendments to Law on extension of blanket guarantee

27-04-2020

27 April 2020, Baku: As it is known, Mr. Ilham Aliyev, the President of the Republic of Azerbaijan has signed a law on extension of full insurance of all protected deposits of the population irrespective their amount for another 9 months.

In the context of other critical decisions taken amid pandemic, this decision by the country leadership, is primarily oriented towards ensuring the interests of the population and strengthening financial system sustainability.

Accordingly, banks operating under the banking licenses and members of the Deposit Insurance Fund (ADIF) have rolled over the blanket guarantee period for all protected deposits with the annual interest rate set by the Board of Trustees of the ADIF as of the date of attraction until 4 December 2020 irrespective deposits’ amount, currency and banks’ financial standing. Thus, the deposits attracted from 4 March 2020 to the effective date of the Law (26 April 2020) under the above conditions are also covered with the Law in force.

Re-extension of the Law on Full deposit Insurance will allow protecting interests of depositors and creditors more reliably, maintaining stable and healthy financial sector and boosting confidence in the banking sector. Extension of blanket guarantee will both robustly support completion of banking sector restructuring and remediation, and push improvement of its role in the economy and better access of businesses and the population to financial services.  

This decision serves to protection of interests of total 8.3 mln depositors (it includes term deposit accounts, as well as current accounts per depositor with different banks) and covers AZN7.3B worth of deposits.