The Fund guarantees the reimbursement of deposits made by individuals, including individual entrepreneurs, in banks operating in the Republic of Armenia (except for its branches established outside the territory of the Republic of Armenia), as well as in branches of foreign banks established in the territory of the Republic of Armenia.
Yes. If the depositor has deposits in several banks operating in the territory of the Republic of Armenia, then his deposits are guaranteed in each bank, up to a maximum limit.
Yes. Both dram and FX deposits are guaranteed.
The guarantor of deposits is the Deposit Guarantee Fund.
The maximum amount of guarantee for dram deposits is AMD 16 mln, for FX deposits – AMD 7 mln.
No action or any payment is required from the depositor. If the depositor has deposit in the bank, it is guaranteed automatically.
A deposit is not guaranteed if it a) belongs to the head of the bank and/or his/her family members; b) belongs to a person with a significant participation in the bank and/or his/her family members; c) the owner (co-owner) of which has renounced ownership of his/her share; d) monetary instrument has been recognized as obtained through criminal means in accordance with the procedure established by law and other legal acts, unless its owner proves otherwise; e) a bank deposit has been placed in the given bank at an interest rate at least 1.5 times higher than the interest rate for similar bank deposits provided for in the public contract proposal of the given bank at the time of placement of the bank deposit.
The Fund shall publish an announcement about the compensation event on the official website of the Republic of Armenia for public notices http://www.azdarar.am and in at least one public media outlet within three working days following the date of the compensation event specifying the procedure for receiving the guaranteed deposit, including the procedure for submitting a written or electronic request by the depositor, the list of necessary documents and information, conditions, methods, and deadlines.
At least one day before the 10th working day following the compensation event, an additional announcement shall be published on the official website of the Republic of Armenia for public notices http://www.azdarar.am and in at least one public media outlet, stating- a) the names and addresses of the bank and its branches that make payments on guaranteed deposits; b) in case of inconsistency of information between the depositor's written or electronic request and the list of depositors provided by the Fund, a list of documents required to receive compensation for the guaranteed deposit.
The reimbursement is effected only in Armenian drams. The dram equivalency of a foreign currency bank deposit is determined using average exchange rate formed in the currency market published by the Central Bank as of the date of the payout event.
Reimbursement of guaranteed deposits is effected both in cash and through transfer to a bank account mentioned by the depositor.
In calculating the payable amount of the guaranteed deposit, at first dram deposits are calculated, and then foreign currency denominated deposits. Moreover, first the principle amounts of deposits (any amount provided by a depositor or a third party in favor of the depositor to (or available with) a bank, which is subject to refunding or payment to the depositor, funds in settlement, current, term, savings or other accounts opened with a depositor's bank, funds attracted by nominal securities issued by the bank) are calculated, then the interest amounts. Where a depositor has an overdue liability to the insolvent bank, the reimbursement amount is calculated by deducting the amount of overdue liability from the deposit amount.
Deposits are guaranteed at the account of financial means of the Fund.
The Fund’s main source of financial resources are compulsory guarantee contributions paid by banks and funds received from investments. The Fund may receive loans, other borrowings, guarantees, grants, gifts, and donations.
In the event of payout of guaranteed deposit, the depositor retains his/her right of claim to the insolvent bank for the difference between the bank deposit and the reimbursed guaranteed deposit. The difference between the bank deposit and the reimbursed guaranteed deposit amount is repaid to the depositor in accordance with the Republic of Armenia Law on “Bankruptcy of Banks, Credit Institutions, investment companies, investment fund managers and insurance companies”.
