YEREVAN, July 13. /ARKA/. On July 7, Serzh Sargsyan, President of Armenia signed a law on making changes and amendments in the law “On guaranteeing compensations of banking deposits of physical entities”.
The given changes were approved by the Armenian national Assembly on June 24, 2010. The changes envisage increase of the size of guaranteeing the currency deposits of the citizens in drams up to 1 million drams versus former 2 million and 1 million drams accordingly.
Board of Trustees of guaranteeing deposits, which consists of representatives of the government, Parliament German Bank KfW and commercial banks of Armenia, will review the sizes of guaranteeing the deposits once in five years.
In case of Force major situations, such as threatening the stability of financial system of Armenia, it is suggested to review the size of the guarantee, provide budget guarantee to the Fund and relevant credit to the Fund through the Central Bank.
Banking deposits of the citizens is guaranteed by Guarantee Fund of compensation of deposits founded by the initiative of CB.
The aim of the Fund is guaranteeing compensation of deposits of physical entities in case of non-solvency of the bank. Deposits in all 22 commercial banks of Armenia are guaranteed. ($1 – 365.81 drams). –0—
