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Over half of insured deposits of Azerbaijani Royal Bank returned

Business Materials 8 August 2012 18:30 (UTC +04:00)
Some 54 percent of insured depositors of bankrupt Azerbaijani Royal Bank have already received compensations
Over half of insured deposits of Azerbaijani Royal Bank returned

Azerbaijan, Baku, Aug.8 / Trend A.Akhundov /

Some 54 percent of insured depositors of bankrupt Azerbaijani Royal Bank have already received compensations, the Azerbaijan Deposit Insurance Fund (ADIF) said on Wednesday.

Since Aug.1, three agent banks selected by the ADIF to pay compensations to insured depositors of the bankrupt Royal Bank, have made payments worth 8.782 million manat", ADIF said.

Of this amount, 6.713 million manat was paid in national currency, 2.016 million manat - in USD, 52,540 manat - in euro.

Compensations are paid through banks Muğanbank, Bank Respublika, and AGbank, in which internal working groups have been already established for efficient organization of work to pay compensation.

The total number of depositors is 6,572, but compensation for 150 of them will be paid after analyzing the documents due to inaccurate documentation.

Accordingly, accounts of depositors in 33 branches of Royal Bank will be transferred to service of 27 branches of three agent banks.

So far, 762 depositors received compensation, 356 of them - in Muğanbank, 226 - in AGbank, 180 - Bank Respublika.

The Fund does not insure deposits placed in member banks of ADIF at an annual interest rate of more than 12 percent, 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 official exchange rate is 0.7856 manat to $1 on Aug.8.

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