Changes to the Deposit Insurance Scheme in Azerbaijan

Dentons
Contact

Dentons

In order to maintain the financial stability in the midst of the prolonged COVID-10 pandemic and the related volatility in international oil markets,  the President of Azerbaijan signed into law the amendments to the Law “On Deposit Insurance” and the Law “On the Total Insurance of Deposits” adopted by the Milli Mejlis (the Azerbaijani Parliament) on December 18, 2020. 

These amendments have changed the existing deposit insurance scheme in Azerbaijan 

The concept of eligible deposits has been expanded

The definition of eligible deposits in the Law “On Deposit Insurance” has been expanded and now includes the following:

  • Funds belonging to individuals placed in a notary's deposit account (for example, in the course of real estate transactions) are considered eligible for deposit insurance upon the occurrence of an insurance event;
  • Funds not exceeding AZN 20,000 deposited in bank accounts opened by individuals for the purposes of entrepreneurial activities.

In addition, as of April 5, 2021, the ceiling for insurance compensation to be received by the holders of eligible deposits will be increased from AZN 30,000 to AZN 100,000.

The effectiveness of temporary (total) insurance coverage has been extended The effectiveness of the Law “On the Total Insurance of Deposits”, under which the Azerbaijani Deposit Insurance Fund insures all eligible deposits, regardless of the amount, with duly licensed local banks that are members of the Fund, has been extended until April 5, 2021.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.