Iran asks to return money from bankrupt bank in Azerbaijan (exclusive)

Business Materials 4 August 2015 13:38 (UTC +04:00)

Tehran, Iran, Aug. 4

By Temkin Jafarov - Trend:

Iran has asked the government and the Central Bank of Azerbaijan (CBA) to return the assets of Iranian entities remaining on the accounts of the bankrupt "Royal Bank", the head of the secretariat of the Azerbaijani-Iranian intergovernmental commission on cooperation in trade, economic and humanitarian spheres Mehdi Mohtashami told Trend in an exclusive interview.

"We appealed to the Azerbaijani government and CBA on the issue of solving the problem with the money of the Export Development Bank of Iran and other entities of our country, which remained on the accounts of Azerbaijani Royal Bank, which declared its bankruptcy," said Mohtashami. "We hope that this problem will be solved in the near future."

The Central Bank of Azerbaijan liquidated the Royal Bank's license on July 12, 2012. On July 16, the closing of Royal Bank was officially recognized as an insured event and a moratorium was initiated in order to fulfill its obligations to depositors.

By the decision of Baku Administrative-Economic Court No.1 taken on July 25, Royal Bank OJSC was declared bankrupt and bankruptcy procedures were initiated. Azerbaijan Consulting Company Ltd was named the liquidator of the bank.

The Azerbaijani Deposit Insurance Fund (ADIF) had made compensation payments on claims in relation to the failure of OJSC Royal Bank.

According to the registry of obligations, 5,759 insured depositors were provided with compensation totaling 26.5 million manats. Some 14.7 million manats or 55.5 percent were paid out of these funds.

Edited by CN


Follow the author on Twitter: @JafarovTemkin