Customers of bankrupt Azerbaijani banks not in hurry to get money back (UPDATE)

Economy Materials 8 February 2016 17:12 (UTC +04:00)
The Azerbaijan Deposit Insurance Fund (ADIF) has paid out about 150,000 mants to 12 clients of Ganja Bank

Details added (first version posted on 12:26)

Baku, Azerbaijan, Feb. 8

By Anvar Mammadov - Trend:

The Azerbaijan Deposit Insurance Fund (ADIF) has paid out about 150,000 mants to 12 clients of Ganja Bank, said the head of the ADIF fund Azad Javadov.

Ganja Bank's licence was cancelled upon a decision of the Central Bank of Azerbaijan (CBA) Jan. 22, 2016. This decision was made because the total capital of the bank didn't correspond to the CBA minimum requirement of 50 million manats.

The bank couldn't fulfill its obligations to creditors and didn't manage its current activity reliably and prudentially.

Javadov said that activity of the Gandja Bank's depositors is quite low.

"Despite repeated warnings, customers of Gandja Bank aren't active and don't hurry to get their deposits back," Javadov said, adding that the clients of the bank will be able to receive their compensations in Baku branches of the agent banks as well.

Rabita Bank, Unibank and Kapital Bank were appointed agent banks. Payments of compensations started since Feb. 4. ADIF will pay 1.5 million manats to 378 insured depositors of Ganja Bank.

Javadov also said that there is low activity among the depositors of Bank of Azerbaijan, which also got its licence revoked.

The depositors of Bank of Azerbaijan can receive compensations in the branches of Muganbank and Rabita Bank, which were appointed agent banks. ADIF returns up to 30,000 manats on each insured deposit.

"Until now, we have paid compensation worth over 16 million manats," he said. "If earlier, we paid 2-3 million manats daily, now the payments have decreased to 1.5 million manats per day."

The amount of the insured deposits in Bank of Azerbaijan is 24.2 million manats.