How much will depositors of closed DemirBank get in Azerbaijan?

Business Materials 26 December 2017 20:22 (UTC +04:00)

Baku, Azerbaijan, Dec. 26

By Azad Hasanli – Trend:

Customers of Azerbaijan’s DemirBank, the license of which was revoked Dec. 23, will get compensation worth 63.5 million manats, Azerbaijan’s Financial Market Supervisory Authority said in a message Dec. 26.

In accordance with the initial assessment held at the bank, DemirBank had a total of 55,213 depositors. At the same time, the amount of deposits of the majority of clients (52,732 people) doesn’t exceed 1,000 manats.

The amount of uncompensated deposits in the bank is 28.3 million manats.

The Financial Market Supervisory Authority (FIMSA) of Azerbaijan said that the license was liquidated due to the discrepancy between the total capital of the bank and the minimum requirement established for banks, and the adequacy ratio of the aggregate capital is lower than three percent stipulated by the legislation.

The bank also lacks the capacity to fulfill its obligations to creditors.

DemirBank is a member of ADIF, and accordingly, deposits of the population in this bank will be returned by the Fund.

A temporary administrator was appointed in the bank under FIMSA’s decision. The Authority also appealed to the court in connection with the beginning of the bankruptcy process.