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Over 60 percent of insured deposits of Azerbaijani Royal Bank returned

Business Materials 13 August 2012 14:54
Azerbaijan Deposit Insurance Fund (ADIF) through three agent banks paid out compensation to cover more than 60 percent of insured deposits of individuals in bankrupted Royal Bank.
Over 60 percent of insured deposits of Azerbaijani Royal Bank returned

Azerbaijan, Baku, Aug.13 /Trernd A.Akhundov/

Azerbaijan Deposit Insurance Fund (ADIF) through three agent banks paid out compensation to cover more than 60 percent of insured deposits of individuals in bankrupted Royal Bank.

ADIF Executive Director Azad Javadov told Trend today.

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 9.8 million manat. In general, it is expected to pay 16 million manat," ADIF said.

Of this amount, 7.329 million manat was paid in national currency, 2.41 million manat - in USD, 60,8 thousand manat- in euro.

"Some 77.8 percent of compensation was paid in manat. Compensation in foreign currency are mainly paid to non residents and in national currency - to the citizens of Azerbaijan," Javadov said.

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.

Currently 898 depositors received the compensation, 394 of them - in Muğanbank (totaling 4.789 million manat), 278 - AGbank (3.093 million manat), 226 - in the Bank Respublika (1.917 million manat).

The Fund expects to complete the basic payments until August 15, the process of payments will continue until July 20, 2013.

"Investors are slow to apply for compensation. Persons who apply for compensation, receive it in the short term," Javadov said.

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.

Official exchange rate on Aut.13 0.7855 AZN/USD

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