State loan guarantee issued for Bank Standard’s deposits
Baku, Azerbaijan, Oct. 4
By Azad Hasanli – Trend:
The Azerbaijani Finance Ministry has approved a state guarantee for Central Bank’s loan of 460 million manats (official rate on Oct. 4 is 1.6138 AZN/USD) to the Azerbaijan Deposit Insurance Fund (ADIF), the ministry said.
The decision was made at an extraordinary board meeting of the ministry, chaired by Samir Sharifov, Azerbaijani finance minister.
The CBA appealed to the Finance Ministry in accordance with the Law on Deposit Insurance and President Ilham Aliyev’s decree dated March 1, 2016.
The loan, allocated by the CBA to the ADIF, is meant for returning Bank Standard’s deposits.
Earlier, it was reported that the Azerbaijan Financial Market Supervisory Body will revoke the Bank Standard’s license on Oct. 1.
The decision was made upon the appeal of the new management of Bank Standard, as well as AzerTurkBank, which has acted as a bridge bank for Bank Standard since July 4.
Individuals’ deposits in Bank Standard total 603 million manats, including 568 million manats of insured deposits.
Bank Standard was founded in 1995. It was one of the largest private commercial banks in Azerbaijan and one of the market leaders in terms of deposits.