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Depositors of bankrupt Azerbaijani Royal Bank receive over 86 percent of compensations

Business Materials 18 December 2012 18:37 (UTC +04:00)

Azerbaijan, Baku, Dec. 17 / Trend J. Nasibova /

At present, most compensations have been paid to cover the insured deposits of physical entities in bankrupt "Royal Bank", executive director of the Azerbaijan Deposit Insurance Fund (ADIF) Azad Javadov told Trend on Monday.

"At the moment, around 12.695 million manat were returned to 1,483 investors," Javadov said.

He said that the issue of returning the rest compensation will be resolved in the near future.

"Royal Bank" had an insurance case on July 16, 2012. According to the register of obligations to depositors, around 7,063 people with a total contribution of 26.5 million manat must get compensation in the total amount of 14.7 million manat, which is 55 percent.

The compensation has been paid through Muganbank, Bank Respublika and Agbank since Aug. 1 where special working groups have been created. The accounts of depositors in 33 RoyalBank branches will be served by 27 branches of three agent banks.
The payments will be made until July 20, 2013.

The licence for banking activities of the Royal Bank was withdrawn by the Central Bank of Azerbaijan (CBA) on July 12.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 fulfill 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 Dec. 18 is 0.7849 AZN/USD.

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