BAKU, Azerbaijan, October 20. The volume of insured deposits in Azerbaijan’s MuganBank, whose license was revoked, amounts to 216.7 million manat ($127.5 million), Azerbaijani MP Vugar Bayramov said, Trend reports.
The funds represent deposits in the amount of up to 100,000 manat ($58,823) with dividends of no more than 12 percent in manat and 2.5 percent in foreign currency.
The deputy noted that along with deposits, funds up to 20,000 manat ($11,764) will be fully refunded to the bank account opened by individuals in connection with entrepreneurial activity, and funds belonging to individuals deposited to the notary's deposit account.
"In order to receive compensation, the depositor must submit a written application to the Azerbaijan Deposit Insurance Fund. The depositor's identity card, a deposit agreement, a bankbook or other documents certifying the existence of a deposit in accordance with the law, and their copies must be submitted. If a representative of the depositor applies for compensation, he must additionally present a notarized power of attorney,” Bayramov said.
“The Deposit Insurance Fund pays out funds no later than 90 days from the date of acceptance of the citizen's application. In exceptional cases, this period may be extended for another 90 days. Interest on deposits is paid in the amount accrued before the day of the insurance event. For deposits in national currency, compensation is paid in Azerbaijani manat, and for deposits in foreign currency - in the deposit currency. If the deposits are not in US dollars or euros, the compensation is calculated and paid based on the official exchange rates set by the Central Bank of Azerbaijan for the respective currencies on the day of the insurance event. Every person who has an insured deposit in Azerbaijan's MuganBank will be able to return their funds in full. Therefore, it is recommended to keep money in banks as an insured deposit," he said.
The license of Mugan Bank was revoked on October 19, 2023, by the decision of the CBA Board dated October 18, 2023, in accordance with Articles 16.1.6, 16.1.7, 16.1.9, 16.1.18, 57, and 61. 1 of the Law of the Republic of Azerbaijan "On Banks" (the amount of total capital is less than the minimum amount established by the legislation for banks, the ratio of total capital adequacy is less than three percent, the bank does not carry out its current activities in a reliable and prudent manner, as well as due to inadequate internal management and control procedures of the bank).
A temporary administrator has been appointed and an appeal to the court on the liquidation of the bank due to its bankruptcy has been prepared.