Liquidated DemirBank’s projects to be transferred to other banks
Baku, Azerbaijan, March 6
By Ilkin Shafiyev – Trend:
Loan agreements of the liquidated DemirBank will be transferred to other banks through the National Fund for Entrepreneurship Support of Azerbaijan, the Fund’s Executive Director Shirzad Abdullayev told reporters in Baku March 6.
DemirBank’s license was revoked Dec. 23, 2017. The Financial Market Supervisory Authority (FIMSA) of Azerbaijan said the license was revoked due to a discrepancy between the total capital of the bank and the minimum capital requirement set for banks, adding that the adequacy ratio of the aggregate capital was lower than 3 percent stipulated by the legislation. The bank also lacked the capacity to fulfill its obligations to creditors.
“DemirBank had unfinished projects through the National Fund for Entrepreneurship Support of Azerbaijan. Several banks have already contacted us in connection with the transfer of these projects to them. We, in our turn, plan to appeal to FIMSA and Azerbaijan Deposit Insurance Fund,” Abdullayev added.
The Fund was established in 1992. The issuance of loans to entrepreneurs is carried out through authorized banks and non-bank credit organizations, the total number of which is 54.
The Fund plans to allocate soft loans worth 170 million manats for entrepreneurs in 2018.