Baku, Azerbaijan, Dec. 29
By Azad Hasanli – Trend:
Compensations to depositors of Azerbaijan’s closed Demirbank OJSC will be paid from Feb. 1, 2018, the Azerbaijan Deposit Insurance Fund (ADIF) said Dec. 29.
The depositors will be able to obtain compensations in branches of Kapital Bank OJSC, according to ADIF.
The volume of compensated deposits in Demirbank OJSC, the license of which was revoked on Dec. 23, totals 63.5 million manats, while the volume of uncompensated deposits amounts to 28.3 million manats.
According to the initial assessment conducted in the bank, Demirbank had 55,213 depositors in total. Meanwhile, the volume of deposits of most depositors (52,732 people) does not exceed 1,000 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.