ADIF talks restructuring of its raised loans

Business Materials 7 March 2017 16:25 (UTC +04:00)

Baku, Azerbaijan, Mar. 7

By Anvar Mammadov – Trend:

The loans raised by the Azerbaijan Deposit Insurance Fund (ADIF) last year have been restructured, ADIF Executive Director Azad Javadov told Trend.

He said that the ADIF raised three loans totaling 567 million manats during the last year to pay compensation to the customers of the liquidated banks in Azerbaijan.

The first loan was raised for the payment of compensation to the depositors of Bank of Azerbaijan, Gandja Bank and Texnikabank, the second loan was raised to pay the compensation to customers of Zaminbank, Dekabank, Kredobank and Parabank. The last loan was raised for the payment of compensation to clients of Bank Standard.

“For the first time, we raised 22 million manats for the payment of compensation to the depositors of the first three liquidated banks,” Javadov said. “The loan was raised for one year at five percent interest per annum. The period of repayment of this loan expired in February 2017, but we fully repaid our debt in January 2017.”

“For the second time, we raised 100 million manats for four years at seven percent interest per annum with the first two years of grace period,” Javadov added. “Then we raised 445 million manats. This loan was allocated for 10 years with five-year grace period at 0.15 percent interest per annum.”

Javadov noted that since the ADIF is supported by Azerbaijani government, the fund received an additional loan worth 520 million manats for a period of ten years.

“The loans previously raised by the fund were restructured at the expense of this additional loan,” Javadov noted. “Thus, currently, we have to repay the loan worth 25 million manats at 0.15 percent interest per annum within ten years in addition to the loan worth 520 million manats, which needs to be repaid to the Azerbaijani government.”

ADIF has been operating since August 13, 2007.