YEREVAN, June 24, /ARKA/. Members of the Armenian National Assembly (parliament) have passed today in the second and final reading a set of changes to the Law on Guaranteed Individual Bank Deposits.
Vache Gabrielian, a deputy Central Bank governor, said the proposed changes call for increasing the amount of guaranteed individual bank deposits. The current law provides guarantees for individual deposits in foreign currency equivalent to one million Armenian Drams and to 2 million worth deposits in Drams. The proposed change suggest that these amounts be doubled.
Under the proposed changes the Board of Trustees of the Deposit Guaranteeing Fund, comprising members of the government, parliament, German KfW bank and local commercial banks will be revising the amount of guaranteed bank deposits once in every five years.
Chairman of a parliament committee on budget and finance issues, Gagik Minasian, said the passage of the bill would lead to reducing interest rates on loans and improvement of the overall economic situation.
The Deposit Guaranteeing Fund was established at the initiative of the Central Bank. Its goal is to return bank deposits to individuals in the event of a bank’s insolvency. All individual deposits in all 22 commercial banks are covered by the law. ($1 – 369.28 Drams). –0–
