Baku, Azerbaijan, March 1
By Anvar Mammadov – Trend:
Registries of moneylenders and plans on liquidation of eight bankrupt Azerbaijani banks will be approved in the first 10-15 days of March, Executive Director of the Azerbaijan Deposit Insurance Fund (ADIF) Azad
Javadov said in an exclusive interview with Trend.
Eight bankrupt banks, namely, Zaminbank, KredoBank, Caucasus Development Bank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank and Bank Standard are being liquidated. Azerbaijan Deposit Insurance Fund (ADIF) is the liquidator of the mentioned banks.
“We cannot publish the liquidation plans until we get a court decision on these plans’ approval,” Javadov said.
He also touched on the issue of the sale of assets of the bankrupt banks. Javadov added that special creditors’ committees were created in the banks in order to ensure transparency of this process, besides, in addition to the ADIF, local and international auditors and evaluators have been attracted to the process of evaluation of the banks’ assets.
“For example, KPMG Azerbaijan, a global network of professional firms providing audit, tax and advisory services, has been selected as appraiser of Bank Standard,” he said. “The liquidity level and liabilities of the mentioned banks are disclosed following all appraisal processes. Another example, according to the documents, the bank's
liabilities reach 100 million manats, while the amount of liquid funds - 50 million manats.” he added.
“Thus, appraisal process is carried out threefold,” he said. “Afterwards, the bank’s property will be sold through auctions and the announcement about it will be made. The further process will be carried out according to the rules of holding ordinary auctions.”
He added that the timing for the completion of a bank's liquidation process will vary depending on the bank itself.
"The bigger the bank, the longer the liquidation process will be," he said.
"The property of the banks, as well as loans, can be sold both within a year or five years,” he added. “According to the international practice, in the future we will be able to sell the loan portfolio of the liquidated bank to other bank to obtain cash to settle obligations."
As of February 24, 2017, ADIF paid the compensation for insured deposits in the amount of 679.45 million manats to the clients of those banks.
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