Azerbaijan forms mechanism to return population's deposits in Savings bank

Azerbaijan has developed a mechanism for the return of deposits invested in the Savings Bank of Azerbaijan up to Jan.1, 1992, MP Ali Masimli said.

“We expect the Cabinet of Ministers and Finance Ministry to take concrete steps. The Parliamentary Economic Policy Committee has already developed bill on the return of deposits of population, return mechanism, explanatory note on each item of the bill, and changes that should be made in the existing legislation to ensure return of deposits,” Masimli said

Azerbaijani Finance Minister Samir Sharifov earlier said Azerbaijan can find the funds to ensure the return of deposits invested in the Savings Bank of Azerbaijan in 2012.  “It will be possible after the development of the bill,” he said.

The issue of the returns of the deposits has been delayed several times due to the difficulties with indexation. A working group was established in the parliament in this regard. This process may start only after the development of the mechanism and approval of the law "On indexation of population's deposits in the Savings Bank of AzSSR before Jan.1, 1992".

The parliament has repeatedly raised the issue of the indexation, but the return of deposits cannot be started without agreement of the state commission established in 20015 under Prime Minister Artur Rasizade’s chairmanship. A coefficient acceptable for Azerbaijan must be determined first. Without the mentioned mechanism, funds from the budget cannot be allocated, although 50 mln manat were put on the state budget to start off the process of deposits' indexation

Based on the previous version of the bill, it was planned to carry out indexation of deposits within 8-10 years, and security papers were among the usable tools. Sharifov said the experience of neighboring countries has shown the inefficiency of this method of the indexation, as it leads to the depreciation of money.

Parliamentary speaker Ogtay Asadov supported Sharifov's proposal on this issue's solution in short term of one or two years. From all the CIS countries only Kazakhstan, Kyrgyzstan and Belarus ended deposits' indexation.


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