Baku, Azerbaijan, Oct. 4
By Anvar Mammadov – Trend:
Azerbaijan’s Zaminbank OJSC has been declared bankrupt, said Azad Javadov, executive director of the Azerbaijan Deposit Insurance Fund (ADIF).
Javadov made the remarks Oct. 4 at a press conference in Baku.
“We completed the assessment of Zaminbank’s assets and were forced to appeal to a court for the bank’s recognition as being bankrupt,” he said commenting on the sale of the bank’s assets in the country’s insurance sector.
Zaminbank has a 24-percent share in Bashak-Inam insurance company.
“Since Zaminbank has assets worth 1.7 million manats (1.6138 AZN/USD on Oct. 4) in the insurance company, and there is a similar amount of money on Bashak-Inam’s deposit account, we have offered the company to make mutual settlement,” explained Javadov. “However, the bank was already declared bankrupt. Therefore, currently, the insurance company must firstly fulfill its obligations to the liquidator and its requirements [on the bank deposit] will be dealt with in order of priority.”
The license of Zaminbank was cancelled as its assets were not classified in line with the law, it didn’t create adequate reserves and the aggregate capital of the bank doesn’t meet the minimum requirements [50 million manats]. In general, he bank hasn’t fulfilled the regulator’s instructions.
Temporary administrator was appointed to Zaminbank on July 22, 2016.
Zaminbank started to operate on Nov. 16, 1992 in Azerbaijan.