Baku, Azerbaijan, Apr. 25
By Anvar Mammadov - Trend:
Participation of the Azerbaijan Deposit Insurance Fund (ADIF) in the liquidation process of a bank depends primarily on the interests of the fund in these banks, head of ADIF Azad Javadov told Trend.
He said that the ADIF will start liquidation only in case if the fund is very interested in this, that is, depending on the amount of compensation paid to depositors of the bank.
"For example, we were greatly interested in the liquidation process of Texnikabank to be transferred to the fund," Javadov said, adding that the fund had to compensate 122 million manats to clients, and most of the mentioned sum has already been paid out.
Today ADIF is engaged in the liquidation process of two banks - Texnikabank and Bank of Azerbaijan.
The process of liquidation of Texnikabank was entrusted to the fund by the decision of Azerbaijan's Financial Market Supervisory Body. Earlier, M.M.M. Perfect Consulting LLC was appointed the liquidator of the bank. At the moment, claims of the bank's creditors continue to be registered.
At the same time, the fund has already completed the reception of the creditors' claims of Bank of Azerbaijan.
The Central Bank of Azerbaijan (CBA) revoked the licenses of the two banks in early 2016.
This decision was made because the total capital of the banks didn't correspond to the CBA minimum requirement of 50 million manats. The total capital adequacy ratio amounted to three percent [the CBA minimum requirement is 10 percent].
The banks couldn't fulfill its obligations to creditors and didn't manage their current activity prudentially.