License of four more credit unions annulled in Azerbaijan
Azerbaijan, Baku, Oct. 16 / Trend , I.Khalilova/
The Central Bank of Azerbaijan (CBA) decided to annul licenses of four non-banking credit organizations in the Beylagan region - Lider, in Baku capital - Qarant, Fuzuli region - Traser and Gadabay region - Gedabey, the CBA said on Oct. 16.
The reason for annulling a license from the Lider credit union (license was issued on Oct. 31, 2003) was not providing the CBA quarterly with financial reports for two reporting periods, not passing the annual audit and continuous violation of standards for economic management, despite repeated warnings . The remaining three credit unions also violated the regulations and did not perform annual audits and so, their licenses for limited banking activities have been eliminated.
The credit unions are tasked to establish a liquidation committee and undertake the necessary work to eliminate.
According to the law on "Credit Unions", these non-bank credit organizations are composed of 11 persons and carry out credit operations through the financing of their own members. They also like the banks have to report quarterly to the Central Bank.
With the closure of the four credit unions, the number of non-credit institutions operating in the country fell to 92, including 73 credit unions, 18 organizations financed by humanitarian organizations, and one of the other non-banking organizations. This year, a license was issued to six credit unions and the same number (taking into account the recent decision of the Central Bank) - annulled.
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