How will compensation be Calculated on Deposits?

By | March 15, 2022

The National Bank of Kazakhstan has given clarifications regarding the mechanisms of the Tenge Deposits Protection Program. A correspondent of the Kapital. kz business information center reports.

Recall that on February 24, 2022, the government and the National Bank published a joint statement on the Tenge Deposit Protection Program.  Which provides for the payment of compensation (premium) on deposits of individuals in the amount of 10%. This decision was made against the backdrop of increased geopolitical risks and volatility in financial markets.

For which types and balances of deposits will the premium be accrued?

Tenge deposits that meet the conditions of the program are allowed to participate in the Tenge Deposit Protection Program. These deposits can be opened in one or more banks participating in the deposit insurance system as of the end of the day on February 23, 2022.

Compensation will be credited to savings and term deposits (including non-term deposits according to the classification of the Kazakhstan Deposit Guarantee Fund). As well as deposits in Otbasy Bank and educational deposits.

Compensation is not charged to current, card accounts, demand deposits, conditional.

Where should I apply and what should I do to receive compensation. Or will it be automatically calculated by the bank?

Shortly, relevant legal acts of the government and the National Bank will be adopted. Which will regulate all issues related to the implementation of this program.

The draft document considers the declarative procedure:

The investor must apply and confirm his agreement with the conditions for calculating compensation. The submission procedure and application form are determined by second-tier banks, and thus. Technical solutions in Internet banking can be implemented in practice.

At the same time, a prerequisite for the payment of compensation is the preservation of the deposit in the bank from February 23, 2022, to February 24, 2023. That is at least 12 months.

What is the time frame for compensation?

Compensation will be credited after February 24, 2023, to the current bank accounts of depositors.

If the deposit is replenished on February 23 or later, then what balances will be credited with the bonus?

According to the project, if the depositor replenished the deposit and did not partially withdraw money. Then the amount of compensation will be calculated based on the amount of the balance at the end of the day on February 23, 2022. But not more than 20 million tenges.

If both the deposit was replenished and the money was partially withdrawn. Then compensation will be accrued for the smallest deposit amount for the period from February 24, 2022, to February 23, 2023 (inclusive). But not more than 20 million tenges.

If during the specified period the depositor completely withdraws the deposit, compensation is not paid.

At what expense will the compensation on deposits be accrued?

The tenge deposit protection program provides for the accrual of compensation (premiums) on deposits of individuals at the expense of the budget.

Who forms the lists of deposits subject to compensation?

According to the terms of the program, the lists of deposits subject to compensation are formed by second-tier banks.

What is the mechanism for transferring funds to banks for compensation?

Funds for the payment of compensation on deposits will be transferred to the banks by the program operator designated by the government.

 

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