Baku, Azerbaijan, Nov. 22
By Azad Hasanli - Trend:
Azerbaijan's Bank Standard issued loans for 304 million manat with zero interest rate during its overall activity, Akram Hasanov, lawyer, chairman of the Creditors’ Committee, said.
Hasanov made the remarks at a meeting of creditors with the management of the Azerbaijan Deposit Insurance Fund (ADIF) in Baku Nov. 21.
He emphasized that the issuance of loans with zero rate is contrary to the banking legislation of the country and is more typical of Islamic banking legislation, which does not work in Azerbaijan.
"The total loan portfolio of the bank is about 743 million manat -- about 58 percent of these loans were issued without obtaining collateral, while the rest of the loans are secured only partially," Hasanov said.
On Nov. 21, Bank Standard's creditors meet with the ADIF management in Baku. The agenda of the meeting included three issues: a meeting with the leadership of the fund, progress on the liquidation of the bank and forthcoming work.
The license of Bank Standard was revoked on Oct. 1, 2016, and on Oct.4 the bank was declared bankrupt. Over this period, depositors were paid more than 430 million manat compensation.
Bank Standard was founded in 1995. It was one of the largest private commercial banks in Azerbaijan and was one of the market leaders in terms of deposits.
(1.7002 manats = 1 USD on Nov. 22)