By Sara Israfilbayova
The Azerbaijan Deposit Insurance Fund (ADIF) and Switzerland’s State Secretariat for Economic Affairs (SECO) discussed issues of improvement of the legislation in deposit insurance and prospects for cooperation.
The discussions were held at a meeting of SECO delegation led by Reto Veermann, the head of the macroeconomic support program, with ADIF’s Acting Executive Director Vugar Abdullayev, ADIF reported on September 8.
The parties discussed the latest changes in the deposit insurance legislation related to the payment of compensation for insured events.
The two sides further considered the future plans and goals of ADIF and prospects for cooperation, as well as further improvement of deposit insurance legislation.
ADIF was founded on August 12, 2007 after the Law on Deposit Insurance was adopted by the Parliament [Milli Majlis] of Azerbaijan.
The purpose of establishing the Deposit Insurance Scheme is to prevent the risk of losing money deposited by individuals and to ensure the sustainability and development of the financial and banking system whenever banks and local branch offices of foreign banks become insolvent.
Deposits accepted by the Fund’s member banks with the annual interest rate 3 percent in the foreign currency and 15 percent in the national currency will be fully insured for 3 years, in accordance with the Law "On deposit insurance".
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