Constitutional Court of Azerbaijan Republic Decides on Insured Deposits
Pursuant to the decision made by Constitutional Court of Azerbaijan Republic on interpretation of Article 220.127.116.11 of Law on Deposit Insurance, the bonuses given to deposit (savings) customers is a measure taken by the bank in order to attract customers and are not included in the annual interest rate for deposits.
Accordingly, if the original interest rate of a deposit is within the limits for insured deposits, payment of bonuses to clients will not make such deposit uninsured.
In addition, it is stated that if after the imposition of corrective measures (i.e. prohibiting or restricting certain type of activities) uninsured deposits changed to insured deposits as a result of decreasing annual interest rates by the bank, such deposits shall be considered insured deposits and compensation for those are payable.