Baku, Azerbaijan, Jan. 30
By Anvar Mammadov – Trend:
The creditors committee of Azerbaijan’s Bank Standard JSC, which is in the process of liquidation, requires a change in the order of distribution of assets of bankrupt banks, as envisaged by the draft amendments to the Law on Banks, prepared by the committee and which is planned to be presented to the government for consideration.
According to the draft, when distributing the assets of a bankrupt bank, individuals who are clients of the bank should be the first in the queue. Meanwhile, it is noted in the draft that if changes are adopted, they should enter into force on March 1, 2016.
Currently, the distribution of assets of a bankrupt bank is carried out in the following order:
1. Requirements of the Azerbaijan Deposit Insurance Fund (ADIF);
2. Expenditures of liquidator and temporary administrator in connection with the bank liquidation process;
3. Requirements of bank employees related to physical injuries and deaths in the workplace;
4. Requirements of current and former employees of the bank in connection with the payment of wages and other payments;
5. Bank’s obligations to the temporary administrator related to the management and financial recovery;
6. Mandatory payments to the state budget in the form of taxes and social contributions;
7. Claims by unsecured creditors.
The remaining assets are distributed among the shareholders of the bank, according to the share distribution.
The license of Bank Standard was revoked on October 1, 2016, and the bank was declared bankrupt on October 4. Over this period, more than 430 million Azerbaijani manats of compensation were paid to depositors.
Bank Standard was established in 1995.