Azerbaijan reveals volume of compensations for 4 liquidated banks

Business Materials 29 July 2016 12:33 (UTC +04:00)

Baku, Azerbaijan, July 29

By Anvar Mammadov - Trend:

The preliminary volume of compensations for four liquidated banks in Azerbaijan will be 110.7 million manats, executive director of Azerbaijan Deposit Insurance Fund (ADIF) Azad Javadov told reporters July 29.

The licenses of DekaBank, KredoBank, Parabank and Zaminbank were cancelled in Azerbaijan, in accordance with the decision of the Financial Market Supervisory Body dated July 21, 2016.

The licenses of those banks were revoked, as their assets were not classified in line with the law, they didn’t create adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats]. In general, they haven’t fulfilled the regulator’s instructions.

Temporary administrators were appointed to these banks July 22.

Javadov noted that the total volume of individuals’ deposits in Parabank is 87.619 million manats, while the insured deposits stand at 61.949 million manats. Deposits worth 43.788 million manats are compensable, he said, adding that the deposits of 18,970 people have been insured in Parabank.

“The deposits of individuals in Zaminbank stand at 53.632 million manats of which 53.631 million manats belonging to 10,742 depositors have been insured. Deposits worth 36.35 million manats are compensable.” said Javadov.

The total volume of deposits in Kredobank is 30.206 million manats of which 20.956 million manats have been insured, he said adding that 27.768 million manats are compensable.

Javadov said that the total volume of deposits made by individuals in Dekabank is 5.585 million manats and 3.767 million manats worth deposits belonging to 133 people have been insured.

Deposits worth 2.807 million manats are compensable, he added.

Javadov recalled that the process of paying compensations will start from Aug.1.

“This time, the depositors will be able to get their compensations in the offices and branches of the banks where they have made deposits,” he said. “We have made this decision because the population has more trust in their banks. The process will go more rapidly and easier this way.”


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