BAKU, Azerbaijan, October 27.Concerning the fate of money on salaries and plastic cards of Azerbaijan's Mugan Bank, whose license was revoked by a Central Bank of Azerbaijan (CBA) decision, I would like to state that these monies should be compensated by the Deposit Insurance Fund, Member of the Committee on Economic Policy, Industry, and Entrepreneurship of Milli Majlis (Parliament) Vugar Bayramov wrote on Facebook, Trend reports.
He noted that according to the legislation, the money on these cards should be paid to citizens by the state.
"Funds on the current accounts of individuals are also protected. The maximum amount of compensation, as in the case of interest-bearing deposits, is 100,000 manat ($58,823)," Bayramov said.
He further stated that funds on individual credit cards are paid to residents as protected deposits reserved in compliance with the law after the appointment of a liquidator. The liquidator chooses an agent bank for this reason, and the monies are returned in line with the set protocol. The compensation payment process is slated to begin at the end of next month.
Mugan Bank's license in Azerbaijan was revoked this month. It was revoked on October 19, 2023, by the decision of the Board of the Central Bank of Azerbaijan (CBA) dated October 18, 2023, in accordance with Articles 16.1.6, 16.1.7,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 Azerbaijan "On Banks" (the size of the total capital is less than the minimum amount established by the legislation for banks; the ratio of total capital adequacy is less than 3 percent; the bank does not carry out its current activities properly).
A temporary administrator has already been appointed, and a petition to the court was drafted for the bank's liquidation due to its insolvency. The Deposit Insurance Fund was appointed as Mugan Bank's liquidator based on the ruling of the Baku Court of Appeal.