Central Bank allocates loan to Azerbaijan Deposit Insurance Fund

The Central Bank of Azerbaijan has allocated a loan worth 22 million manats to Azerbaijan Deposit Insurance Fund (ADIF), the Fund’s executive director Azad Javadov told Trend March 12.

The official exchange rate on March 12 is 1.6456 AZN/USD.

He noted that the loan has been allocated for a period of one year at five percent per annum.

The loan has been mainly attracted to uphold the currency structure of the Fund’s assets, said Javadov.

“The amount of the loan is not so big and we are going to completely repay it even earlier than a year,” said the executive director.

He noted that ADIF should pay 148 million manats to depositors of liquidated banks, while its funds stood at 132 million manats as of early 2016.

“We have already paid over 110 million manats of compensation to depositors,” said Javadov. “It is impossible to forecast the exact amount of compensations. This amount can change as a result of evaluation.”

“Therefore, we have attracted this amount of loan to have reserve funds,” he said. “I believe that after paying compensations to all depositors, we will still have 5-6 million manats.”

Javadov believes that there is no need to attract additional loan for ADIF in the near future.

Source: trend