The Fund guarantees deposits of physical persons, including individual entrepreneurs, invested in all RA banks and foreign bank branches operating in Armenia. Deposits invested in RA bank branches operating outside Armenia are not guaranteed.
Yes. If the depositor has deposits in different banks operating in Armenia, his/her deposits are guaranteed in each bank separately in the amount set in the Law.
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 AMD10 mln, for FX deposits – AMD 5 mln.
No action or any payment is required from the depositor. If the depositor has deposit in the bank, it is guaranteed automatically.
A bank deposit is not a guaranteed deposit, which a) belongs to a manager of any given bank and/or his/her family members, b) belongs to a party holding a significant participation in any given bank and/or his/her family members, c) whose owner (co-owner) has waived ownership over his/her share, d) has been recognized as a criminally obtained fund under law and other regulations, unless otherwise proved by its owner, e) has been invested with any given bank at a rate of at least 1.5 times higher than the interest rate on similar bank deposits specified in the offer to sign a public contract by that bank.
The Fund shall within three working days following the day of payout event publish an announcement about the payout event on the site for official notifications http://www.azdarar.am and at least through one public media, stating the procedure for receiving guaranteed deposits, including the procedure for submission written or electronic claims, list of required documents and information, conditions, ways and terms. At least one day before the start of reimbursements the Fund publish additional announcement again on the site for official notifications http://www.azdarar.am and at least through one of the public media, stating the name and addresses of the bank and its branch(es) effecting payment of guaranteed deposits, list of required documents for receiving guaranteed deposits in case of mismatch of depositor claim and the data in the bank database provided to the Fund.
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 expense of the Fund’s financial means.
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”.