Population deposit insurance amount to be doubled in Armenia

YEREVAN, September 4. /ARKA/. Armenian Government approved amendments
to the country’s laws about deposit insurance, the Central Bank of
Armenia and Armenian budgetary system.

Under the amendments, deposit insurance amount is doubled for
population’s dram and exchange deposits in insolvent banks, Chairman of
the Central Bank of Armenia (CBA) Artur Javadyan said.

From now on the deposit insurance amount is 2 million drams for
deposits in foreign exchange and 4 million drams for dram deposits.

Apart from this, it is proposed to review the deposit insurance amount
once every five years, the CBA Chairman reported. The size of insurance
is to be reviewed also under force majeure circumstances if the
country’s financial system is threatened: under these circumstances the
government can provide a budget guarantee to the deposit insurance fund
and extend a loan to the fund through the Central Bank, Javadyan said.

Armenian Deputy Minister of Finance Pavel Safaryan said the ministry
opposed budget guarantees.

According to the country’s Premier Tigran Sargsyan, the fund is a body
set up by the government through the Central Bank and it insures
deposits of the Republic of Armenia. Hence, the proposals are quire
proper, Sargsyan said.

`We cannot assign the entire load to the Central Bank, it’s not the
function of the Central Bank,
but of the state,’ the Premier said. He
also reported a suggestion to bring the deposit insurance fund out of
the Central Bank system and make it an independent organization with
its own resources like it is in the United States. ($1=376.06drams).
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