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Deposit Guarantee Fund of Armenia is a non-commercial organization, founded by the Central Bank of Armenia in accordance with the RA law on "Guarantee of remuneration of bank deposits of physical persons”.The objective of the Deposit Guarantee Fund is guaranteeing remuneration of amounts placed by individuals in the banks. The Funds guarantees deposits in all 18 banks operating in Armenia. Remuneration is effected in case of insolvency of a bank.- If a depositor holds a dram-denominated bank deposit with the insolvent bank, the amount of guaranteed deposit will be AMD 16 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.- 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.- 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 and compensation paid for dram-denominated bank deposit.Resources of the Fund shall be the amounts of guarantee contributions defined by this Law, the income from management of such funds, sums received from banks based on the obtained right of the claim over the banks for the Fund’s reimbursed amounts. The Fund is controlled by the Central Bank of Armenia.
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