ADIF expects to up its reserves

Azerbaijan Deposit Insurance Fund (ADIF) expects to increase its insurance reserves to 50 million manat by late 2012, executive director of the fund Azad Javadov told media on Monday.

The fund's insurance reserves increased by 6.39 per cent for the second quarter and amounted to 48.3 million manat. ADIF has started to pay compensation to depositors of bankrupt Royal Bank through three agent banks since August 1. The fund plans to pay about 14.9 million manat, which is almost a third of its assets, for the first time in its activity.

"After paying the compensation, we will have about 34 million manat, but after a few months we will get the money back from RoyalBank's liquidator - Azerbaijan Consulting Company, Javadov said.

He said that the fund receives about 3.5 million manat every quarter.

"This year, we will get funds following the third quarter, while following the fourth quarter in 2013," Javadov said.

Total deposits of physical entities in the member banks of the Azerbaijan Deposit Insurance Fund (ADIF) amounted to 4.319 billion manat for the first half, increasing by 1.72 percent for the second quarter.

Around 2.776 billion manat of this amount fall to insured deposits. The number of insured depositors as of the reporting period amounted to 6,125 people.

Calendar payments made in the second quarter by 43 member banks of the fund amounted to 1.871 million manat, $1.641 million and 177,000 euros.

The deposits in ADIF member banks at an annual interest rate of over 12 percent, are not insured by the fund and the compensation is not envisaged.

At present, the maximum level of insurance coverage for the deposit is 30,000 manat.
The depositors do not make any payments to insure their deposits. The insurance payments are made only by banks.


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