Azerbaijan, Baku, Sept 11 /Trend/
The Azerbaijan Deposit Insurance Fund (ADIF) has paid compensation to cover more than 80 per cent of the physical entities' insured deposits in the bankrupt RoyalBank through three agent banks within 35 days.
Three agent banks chosen by ADIF to pay compensation to RoyalBank's insured depositors have paid 11.723 million manat to 1162 depositors since August 3.
The total amount of compensation, to be paid to 7067 insured depositors of the bank is 14, 658 million manat.
The compensation is being paid through the Muganbank, Bank Respublika and Agbank where special working groups have been created. The accounts of depositors in 33 RoyalBank branches will be served by 27 branches of the three agent banks.
Payments will be made until July 20, 2013.
The deposits in ADIF member banks at an annual interest rate of over 12 per cent, are not insured by the fund and the compensation is not envisaged.
At present, the maximum level of insurance coverage for the deposit is 30,000 manat.
The licence for banking activities of the Royal Bank was withdrawn by the Central Bank of Azerbaijan (CBA) on July 12. On July 16, the closure of Royal Bank was officially recognised as an insurance case and moratorium was applied to fulfil its obligations to depositors.
RoyalBank was declared bankrupt and proceedings began in accordance with the decision of the administrative and economic Baku Court N1 on July 25. The Azerbaijan Consulting Company was declared the liquidator of the bank.
Official exchange rate on Sept 11 is 0.7852 AZN/USD