Bulk of insured deposits placed in USD
By Vusala Abbasova
The Azerbaijan Deposit Insurance Fund (ADIF) has insured more than 6 million depositors, 69 percent of whom placed their insured deposits in dollars, while 27 percent of insured deposits placed in manats and 4 percent-in euro, according to an ADIF report for the first half of this year.
The member-banks of the ADIF serve 7.147 million depositors and 90 percent of them have been insured for the reported period.
According to the ADIF official site, the total volume of deposits increased by 884 million manats (13.2 percent) to 7.561 billion manats.
The volume of the preliminary compensation of deposits has increased by 437 million manats (25.9 percent) hitting 2,122 million manats, which makes up 28 percent of all insured deposits.
The Fund's total income amounted to 12.4 million manats, including insurance premium (10.6 million manats) and interest yields (1.8 million manats).
The AIDF's insurance reserves hit 103 million manats, while the Fund's total expenditures amounted to 766,500 manats for the six-month period.
ADIF idle funds, which are managed in accordance with the Fund’s investment policy, stood at 11.4 million manats.
As of the second quarter of 2015, 85.5 million manats were converted to the state securities, with the annual return on fund assets averaging 4.2 percent.
Around 5 million euros were transferred under the management of the "Deutsche Asset & Wealth Management International" company.
The ADIF had previously raised the maximum interest rate on insured deposits from 9 percent to 12 percent on February 24, 2015.
Deposits placed at ADIF member banks at an annual interest rate of over nine percent are not insured and compensation is not available.
Depositors do not make any payments to insure their deposits; insurance payments are made only by the banks themselves.
The ADIF commenced operations on August 13, 2007.
The basic aims of the ADIF are to prevent the risk of loss 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.
The official exchange rate is 1.0492 AZN/USD on July 27.
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