Yerevan/Mediamax/. Changes to the Law on “Guaranteeing individuals’ bank deposit compensation” came into force and has effect on all depositors, irrespective of the term of deposit registration.

Director of Armenian Deposit Guarantee Fund Hermine Harutyunyan explained in an interview to Mediamax that the new volume of bank deposit compensation (4mln AMD for deposits in national currency and 2mln AMD for deposits in foreign currency) has effect on depositors, who have registered their deposits both before and after approval of the legislative changes.

In late June, 2010, Armenian parliament approved changes in the law on “Guaranteeing individuals’ bank deposit compensation”, according to which the volume of compensation of AMD bank deposits is established at the level of 4mln AMD (instead of previous 2mln), and in foreign currency – 2mln AMD (instead of previous 1mln).

Hermine Harutyunyan stated that both bank deposits and settlement and operating accounts of individuals and private entrepreneurs, registered in all commercial banks of Armenia, are subject to compensation.

If the bank is declared insolvent or bankrupt, this is considered a case of compensation.

“The Fund guarantees the deposit of each depositor in each bank, simply speaking, one and the same depositor, who at the same time has deposits in all banks of the country will receive compensation on all deposits in all banks, if there is a case of compensation”, Hermine Harutyunyan stated.