Two loan unions' licenses annulled in Azerbaijan

Business Materials 24 April 2009 18:40 (UTC +04:00)

Azerbaijan, Baku. April 24 / Trend I. Khalilova /

Licenses for activity of two non bank loan organizations situated in Beylagan region "Apeks" and "Bayandurlu" in Baku were annulled upon the decision of the Azerbaijani Central Bank's board, Central Bank said on April 24.

Reason for annulment "Apeks" loan union's license (license dated January 14, 2002) was the following. The union did not submit quarter financial accounts during 3 accounting periods to the Central Bank of Azerbaijan, as well it was not checked by annual audit.

License of "Bayandurlu" loan union (license dated November 25, 2004) was annulled due to regular violation of norms and unsettled disadvantages despite numerous warnings by the Central Bank. The union was not checked by annual audit that's why its license was annulled.

Loan unions were charged with creating liquidation commissions and conducting necessary operations on liquidation.

These non bank loan organizations are created in the staff of 11 people upon the law "Loan unions". Loan operations are held via financing its members.

They also as banks must submit accounts to the Central Bank quarterly.

By closing these two loan unions the number of non bank loan organizations operating in the Republic reduced to 92, including 73 loan unions, 18 organizations financed by humanitarian organizations and 1 - other non bank loan organizations. 

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