Depositors of bankrupt bank in Azerbaijan compensated with over 88% of insured assets

Photo: Depositors of bankrupt bank in Azerbaijan compensated with over 88% of insured assets / Finance

Azerbaijan, Baku, July 26 / Trend, I. Khalilova /

As of July 1, the Azerbaijani Deposit Insurance Fund (ADIF) had made compensation payments worth 13 million manats on claims made on July 16, 2012 in relation to the failure of OJSC Royal Bank, a fund report posted online Friday said. The Fund has compensated 88 percent of losses.

"According to the registry of obligations, 5,759 insured depositors were provided with compensation totaling 26.5 million manats. Some 14.7 million manats or 55.5 percent were paid out of these funds," the report said.

The bank had 7,063 depositors.

Acceptance of applications for compensation for Royal Bank depositors was suspended on July 23.

The payment of compensations began on August 1, 2012 via Muganbank, Bank Respublika and AG Bank. The accounts of depositors in 33 branches of Royal Bank have been transferred under the service of 27 branches of three agent banks.

Royal Bank's license was liquidated by the Central Bank of Azerbaijan (CBA) on July 12, 2012. On July 16, the closing of Royal Bank was officially recognized as an insured event and a moratorium was initiated in order to fulfill its obligations to depositors.

By the decision of Baku Administrative-Economic Court No.1 taken on July 25, Royal Bank OJSC was declared bankrupt and bankruptcy procedures were initiated. Azerbaijan Consulting Company Ltd was named the liquidator of the bank.

The official exchange rate for July 26 is 0.7843 AZN/USD.

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