Baku, Azerbaijan, Jan. 28
Trend:
The Central Bank of Azerbaijan may render financial assistance to the Azerbaijan Deposit Insurance Fund (ADIF) in case of shortage of funds for payment of compensations to the closed banks' depositors, said Azad Javadov, the ADIF executive director.
He made the remarks at a press conference in Baku Jan. 28.
Javadov further said that currently the volume of ADIF's funds stand at 132 million in the manat equivalent.
"ADIF's insurance reserves stood at 132 million manats as of late 2015," he said. "Some 75 million manats of this amount have been placed in state bonds. The remaining funds amount to $28 million and seven million euros. They have been placed on the CBA account."
"The total amount of deposits in the six liquidated banks is 80 million manats," he said. "But while inspecting the Bank of Azerbaijan's deposits, it was found out that the insured deposits in the bank amount to 24 million manats, rather than 36 million manats."
"As a result, the total amount of the insured deposits dropped to 68 million manats," he said. "I'd like to add that other banks have not been declared bankrupt yet. But even in this case, we will have enough funds to meet our commitments."
Javadov also said that according to the new legislation, in case of a shortage of funds, ADIF may appeal to the CBA for a loan.
"Under the previous legislation, in case of a shortage of funds, ADIF could issue bonds to draw funds or appeal to the CBA for a loan," he said. "But under the new legislation, we can appeal to the CBA for a loan, issued under the state guarantee."
Javadov said that the data on banks may constantly change.
In general, the total number of depositors in six banks was initially 31,000 people, according to these banks.