Azernews.Az

BAKU – Deutsche Invest, a subsidiary of Deutsche Bank, has become the foreign broker for management of the funds of Azerbaijan Deposit Insurance Fund (ADIF).

"Together with Deutsche Invest, preparations are underway to place the Fund's assets, and we expect that the Fund will allocate its assets abroad as early as in September," ADIF Executive Director Azad Javadov was quoted by the media as saying on Monday.

To date, part of the Fund's resources - 11 million manats, or $13.75 million - have been placed in short-term government bonds (10 million manats) and mortgage bonds (1 million manats).

Following the allocation of a 5 million euros loan from KfW for the capitalization of ADIF, the Fund's assets increased to 24 million manats, therefore, the Fund has drawn a brokerage to transfer the funds to short-term management of foreign banks.

Under the Fund's investment policy, the resources can be placed in high-rating securities of foreign banks and financial institutions with the "AAA" rating.

Today, the Fund brings together 43 banks out of the 47 banks operating in the country. ADIF began operation in August 2007. Total deposits in ADIF member banks in the second quarter of 2010 amounted to 2.483 billion manats, of which uninsured deposits totaled 818m manats, and insured ones 1.665bn manats.