YEREVAN, March 19. / ARKA /. A group of Armenian MPs have initiated a legislation calling for doubling the size of insured individual deposits, ‘Hayots Ashkhar’ (Armenian World) newspaper reported.

Today the maximum amount of insured deposits in Armenian national currency, the dram is 4 million and the amount of deposits in foreign currency is the equivalent of 2 million drams. This means if a bank goes bankrupt its depositors can be sure that they will receive their deposits in these sizes.

The proposed legislation also says if a depositor has deposits both in drams and in foreign currency in an insolvent bank and the amount of deposits in drams is over 4 million, the insured amount of deposits in drams should be 8 million, while the insured amount of deposit in foreign currency is to be the equivalent of difference between 8 million drams and the insured amount.
According to the authors of the legislation, these changes will create additional incentives for people to keep their money in banks.

According to Hayots Ashkhar, this initiative is actually approved by the government, because it will increase the confidence of depositors in the banking system.-0--