Azerbaijan, Baku, Aug. 2 / Trend I.Khalilova /
To date, 130 depositors of the bankrupt Royal Bank received compensations for their savings, Executive Director of the Azerbaijan Deposit Insurance Fund (ADIF) Azad Javadov told Trend on Thursday.
"Since yesterday, they were paid 1.538 million manat," Javadov said.
Compensation payment is carried out through three agent banks - Muganbank, Bank Respublika, and AGbank, which had already established internal working groups for the efficient organization of work for compensation to insured depositors of Royal Bank.
Compensation will be paid to 6255 depositors in the total amount of 17.3 million manat. At the same time due to inaccurate documentation compensations to 150 bank customers will be provided after the analysis and specification of documents.
Accordingly, the accounts of depositors in 33 branches of the Royal Bank will be served by 27 branches of the three agent banks.
Currency composition of the compensated deposit portfolio is as follows: deposits in national currency in the amount of 9.620 million manat, in U.S. currency - $8.281 million and European currencies - 1.141 million euros.
"Compensation shall be paid at the request of the depositor, in cash or in non-cash, some investors transferred their funds to the accounts of the agent banks," Javadov said.
All payments will be completed within two weeks.
Deposits in ADIF member banks, at an annual interest rate of over 12 percent, are not insured by the fund, and compensation for them is not provided. Currently, the maximum level of insurance coverage for a single deposit is 30,000 manat.
The license for banking activities of Royal Bank has been eliminated by the Central Bank of Azerbaijan (CBA) on July 12. On July 16, the closure of Royal Bank was officially recognized as insurance case, and moratorium was applied to fulfill its obligations to depositors. Royal Bank has been declared bankrupt and bankruptcy proceedings began in accordance with the decision of the administrative and economic Baku Court N1 on July 25. Azerbaijan Consulting Company was declared the liquidator of the bank.
The Central Bank of Azerbaijan (CBA) told Trend the payment for the remaining contributions [uninsured by ADIF], as well as all other claims of the creditors will be made through the collected assets of Royal Bank.
"In accordance with the law On Banks, claims to the bank are registered by the liquidator company in a written order within 60 days after publication of the decision of the court to declare bankruptcy, and are issued in order of priority," the CBA said.
As noted in the Central bank, when fulfilling bank's obligations priority is the return of deposits. At the same time insured deposits are reimbursed at 100 percent, but on condition that it does not exceed 30,000 manat.
Royal Bank was established on August 2, 1993 as a joint commercial bank OZ Bank.
The official exchange rate is 0.7855 AZN to $1 on August 2.