Tue, 12 August
28.1 C
Yerevan
USD: 384.03 RUB: 4.80 EUR: 443.29 GEL: 142.29 GBP: 510.11

Armenia law that increases the amounts of insured banking deposits enters into force

YEREVAN, December 1. /ARKA/. A revised Armenian law that has increased the amount of insured banking deposits both in the national and foreign currencies has entered into force on December 1, 2020, the Union of Banks of Armenia reported.

The revised law was passed by the parliament on September 15. The changes were proposed by the Prosperous Armenia party.

Under the new law, the amount of insured deposit in Armenian drams is now 16 million, up from the previous 10 million, and the amount of insured deposits in foreign currency is the equivalent of 7 million drams, up from the previous 5 million drams.

If citizens have both dram deposits and in foreign currency and if the dram deposit exceeds 7 million, only the dram deposit of up to 16 million drams is insured.

If citizens have deposits in drams and in foreign currency, but the dram deposit is less than 7 million then the dram deposit is insured in full, while the foreign currency deposit in the amount of the difference between 7 million drams and the refunded bank deposit in drams.

“The purpose of the law  is to increase the reliability of the banking system of Armenia and to protect the interests of depositors,” the Union of Banks said. It added that under the law all monetary deposits of one person in one bank are considered as one deposit and all deposits in foreign currency as one deposit.

“If you have deposits in several banks operating on the territory of Armenia, they are insured by each bank,” the Union said.

Today only banks, which are part of the deposit insurance system, have the right to accept deposits of individuals. These are all Armenian commercial banks.

If a bank’s license is revoked, or it is declared bankrupt in other similar cases, the Deposit Insurance Fund will compensate for depositors’ funds in accordance with the law.

The Fund, established by the Central Bank of Armenia, is a non-commercial legal entity. Its main goal is to ensure the stability and reliability of the country’s banking system by insuring deposits of individuals and private entrepreneurs.

According to the Central Bank of Armenia, the total volume of bank deposits as of September 30, 2020 stood at about 3.6 trillion drams. Of that amount about 1.7 trillion drams were in deposits in the national currency and the equivalent of 1.9 billion (53%) in foreign currency. ($1 – 506.98 drams). –0–

spot_img

POPULAR

Armenia registered an inflation rate of 3.4% in July.

According to the National Statistical Committee (NSC) of Armenia, 12-month inflation in the consumer market amounted to 3.4% in July of this year.

Market capitalization in July increased by 45.3% year-on-year, exceeding 463 billion drams – Armenia Stock Exchange

Armenia Stock Exchange (AMX) has summarized the trading activity for July 2025. The month showed a dynamic trading environment, highlighting growing investor confidence and market activity. 

Armenian Central Bank  developing mechanisms for insurance and combating financial fraud

Armenia's Central Bank is developing a set of tools to combat financial and cyber fraud, the deputy chairman of the Central Bank Armen Nurbekyan said at a press conference on Tuesday.

Net inflow of money transfers to Armenia from abroad decreased by 1.3% in half-year

The net inflow of cross-border transfers in favor of individuals in Armenia, received from abroad through the banking system of the Republic of Armenia, in January-June 2025 amounted to $587.6 million against $595.4 million in January-June 2024, according to the report of the Central Bank of the Republic.

Deputy Prime Minister discusses cooperation prospects with new head of WB Armenia office

Armenian Deputy Prime Minister Tigran Khachatryan received World Bank Regional Director for the South Caucasus Rolande Pryce and newly appointed head of the WB Armenia office Fabrizio Zarcone, the government press service reported.

LATEST NEWS

spot_imgspot_imgspot_img