Azerbaijan, Baku, 11 July / corr Trend I.Khalilova / The Managing Board of the National Bank of Azerbaijan (NBA) made a decision to recall the license issued for two Azerbaijani banks, Atlantbank and Poctbank, the NBA said. As a result, the number of banking operations active in Azerbaijan reduced to 44.
These measures are taken to restructure banking system of the country, to ensure financial stability and to increase the efficiency of financial mediation.
Due to failure to meet the minimal requirement on the combined capital, violation of the banking legislation, as well as non-observation of prudential norms in management and realization of current transactions, violation of instructions and requirements of the NBA, license №169, issued for Atlantbank on 4 December 1993 was also recalled..
An interim administrator appointed at the bank on 10 July will function in 43, Z.Khalilov, Baku, where the bank was located.
License 46, issued for Poctbank on 3 December 1992, was recalled due to violation of the banking legislation and full loss of solvency. At the same time the process to announce bankruptcy of Poctbank and it was decided to appeal the court in this respect.
Poctbank has not carried out banking activities for several years, whilst delay in recall of its license was related to the international suit filed by FIMbank, where the Azerbaijani bank also acts.
Some 20% of the Azerbaijani-based Poctbank's shares belonged to "Kuwait Interests for Financial Investment" (KIFI). This company is the key founder of FIMbank.
Having big debts, POctbank borrowed loan from FIMbank though submitting false documents on behalf of the Azerbaijani Government. The false documents submitted to FIMbank stated that the loan would be used to purchase telecommunication equipment for the companies Aztell and Baktell (in reality such companies do not exist) which belong to Azerbaijani Ministry of Communications and Information Technology and the Ministry guaranteed the repayment of the loan.
Poctbank could not repay the loan received on the basis of false documents and the financial deal between the two banks was failure. As a result, FIMbank filed a suit against the Azerbaijani Government at the Rotterdam Court. The hearings are still underway on the case
On 10 July official rate of US Dollar was AZN 0.8085.
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