Temporary administration appointed at Azerbaijani bank’s Georgian subsidiary
Baku, Azerbaijan, Aug. 18
By Azad Hasanli – Trend:
The National Bank of Georgia (NBG) decided to appoint a temporary administration at the Caucasus Development Bank-Georgia JSC, a Georgian subsidiary of Azerbaijan’s Caucasus Development Bank.
NBG said in a message Aug. 18 that the decision was made given the developments around the bank’s head office in Azerbaijan, and not due to the problems of the bank operating in Georgia.
The license of Caucasus Development Bank was revoked on Jan. 27, 2016, in Azerbaijan, while it was declared bankrupt on Aug. 16 by the Baku Administrative-Economical Court No.1.
The Central Bank of Azerbaijan (CBA) had said the bank’s license was revoked because its total capital didn't correspond to the minimum requirement of 50 million manats. The bank also couldn't fulfill obligations to creditors, CBA explained.
The Caucasus Development Bank-Georgia, with assets of 0.14 percent of the total banking assets of Georgia, continues services to its clients, said the NBG message.
According to the NBG, capital and liquidity levels of the bank are quite high, and, if needed, the temporary administration can fully meet the requirements of creditors, including the depositors.