Evocabank has announced that effective December 1, 2020, the maximum amounts of guaranteed bank deposits of individuals will be raised.

Thus, new thresholds for deposit insurance will be in effect starting December 2020. In particular,

- If a depositor holds a dram-denominated bank deposit with the insolvent bank, the amount of guaranteed deposit will be AMD 16 million (compared to the previous AMD 10 million),

- If a depositor holds only an FX-denominated bank deposit with the insolvent bank, the amount of guaranteed deposit will be  AMD 7 million (compared to the previous AMD 5 million),

- If a depositor holds dram and FX-denominated bank deposits with the insolvent bank, with the dram deposit amount exceeding AMD 7 million, the insurance shall apply only to the dram-denominated deposit, for up to  AMD 16 million (compared to the previous AMD 10 million),

- If the depositor holds dram and FX-denominated deposits with the insolvent bank, with the dram deposit being less than AMD  7 million, the insurance shall apply to the entire dram-denominated bank deposit and the FX-denominated deposit for the difference between AMD 7 million (compared to the previous AMD 5 million) and compensation paid for dram-denominated bank deposit.

The newly set thresholds for bank deposit insurance will apply also to the deposit agreements being in effect as at December 1, 2020.

All dram-denominated deposits of the depositor with the same bank are considered one deposit, except for non-guaranteed deposits and all foreign currency-denominated deposits of the depositor with the same bank are considered as one deposit, except for non-guaranteed deposits.

If the depositor holds deposits with several Armenian banks, their deposits shall be guaranteed by each of the banks at their maximum amounts.

The guarantor of the deposits is the Deposit Guarantee Fund.

The purpose of the law On Guaranteeing the Remuneration of Bank Deposits of Individuals is to promote a reliable banking system in Armenia, enhance the public confidence in banking system and defend interests of depositors.