ADIF to guarantee deposits of Turkish bank

Ziraat Bank Azerbaijan JSC has been included in the register of member banks of the Azerbaijan Deposit Insurance Fund since May 15 by decision of the Central Bank of Azerbaijan.

Thus, the number of ADIF members increased to 44 out of 45 banks operating in Azerbaijan. Banks carry out membership fees and calendar payments to the fund.

Insurance fund reserves currently amount to 99 million manats [excluding the contributions of Turkish bank].

T.C. Ziraat Bankasi received a license from the Central Bank of Azerbaijan to conduct banking activities in Azerbaijan through its subsidiary in late 2014, the Ziraat Bank Azerbaijan.

The bank plans to start operations in Azerbaijan in June. Currently, a preparatory work is underway.

T.C. Ziraat Bankasi has been operating since 1863, and is the largest bank in Turkey.

Outside of Turkey the T.C. Ziraat Bankasi is currently present in Germany, Bosnia and Herzegovina, Russia, Kazakhstan, Turkmenistan and Uzbekistan.

The bank also has offices in the UK, the US, Bulgaria, Georgia, Iraq, North Cyprus, Greece, Saudi Arabia and Iran.

Some 54.1 percent, of 4.05 billion manats, have been insured of the total volume of individual deposits in member banks of Azerbaijan Deposit Insurance Fund (ADIF) in the first quarter of 2015.

Member banks of the fund render services to 6.985,590 depositors, 89.6 percent (6.257,920 people) of which are the insured depositors.

The volume of compensated deposits increased by 21.9 percent or 369 million manat – to 2.054 million manat, which is 47 percent of the insured deposits.

Some 52 percent of insured deposits are placed in US dollars, 44 percent – in manats and 4 percent – in euros.

ADIF started operating on August 13, 2007.

Starting from February 24, the Azerbaijan Deposit Insurance Fund (ADIF) increased the maximum level of interest rate on insured deposits from 9 to 12 percent.

The deposits placed in member banks of the ADIF at an annual interest rate of over 12 percent are not insured by the fund and the compensation for them is not provided.

The maximum amount of insurance coverage for deposits in Azerbaijan is 30,000 manats. Depositors do not make any payments for the insurance of their deposits, insurance payments are made only by the banks themselves.

SOURCE: Azer News