OREANDA-NEWS. November 5, 2008. As the National Bank of Azerbaijan reduced its rate to 10% on October 31, other member banks of the Azerbaijan Deposit Insurance Fund (ADIF) that launched activity on August 13, 2007, have to act the same way.

Azad Javadov, the Fund’s executive director, said in accordance with the Law on Deposit Insurance, insurance coverage concerns only deposits raised under the rate that does not exceed 1.8 of the National Bank’s rate.

“To keep insurance coverage ADIF members should reduce deposit rates beginning from October 31 to 18% per annum,” A.Javadov said.

Today ADIF insures deposits of 1,275,540 people. Since August 13, 2007 all the ADIF receipts made AZN 8.897 million. Individuals’ overall deposits in the ADIF member banks totaled AZN 1.498 bn, including non-insured deposits AZN 268 million and insured deposits AZN 1.462 bn.

The Fund members also pay lump-sum entrance fee of AZN 10,000.

Member’s calendar fee makes 0.15% of average daily balance on deposits in manats for previous 90 days. Calendar fee is paid by the members after they got in the ADIF register and its payment is stopped in case the member is withdrawn its bank license.

ADIF started its operating on August 13, 2007. Today the Fund is numbering 37 member banks. Azerbaijan is numbering 45 banks and in accordance with law all they should become the ADIF members.