CBA to defend its interests in court due to revocation of bank licenses (UPDATE 2)
Details added (first version posted on 12:36)
Baku, Azerbaijan, March 1
By Azad Hasanli - Trend:
The Central Bank of Azerbaijan (CBA) intends to defend its interests in court due to the revocation of licenses of Atrabank and the Caucasus Development Bank, head of the CBA Elman Rustamov told reporters March 2.
"The trial is underway," he said. "We will defend the decisions made and our own interests in court."
The CBA revoked the licenses of these two banks on Jan. 27 because their total capitals didn't correspond to the minimum requirement of 50 million manats.
The banks also couldn't fulfill obligations to creditors, CBA explained.
At the same time, Atrabank and Caucasus Development Bank have agreed to merge, in connection with which a protocol of intent was signed.
Rustamov also raised the issue of consolidation of banks, noting that this process is not yet finished.
"This process will end when new shareholders hold a meeting," he said. "For now, three banks are in the process of consolidation, they have already signed a protocol of intentions. But the further process will take time. At first, they need to carry out mutual evaluation of assets and so on."
AGBank [on the market since 1992] and Bank Standard [since 1995] also announced about the intention to unite, and have already signed a corresponding protocol.
At the same time, NBCBank has already signed a protocol of intent to merge with Parabank and Kredobank.