Azerbaijani Finance Ministry Releases Number of Insurance Companies not Corresponding to Capitalization Requirements
Azerbaijan, Baku / Trend corr I. Khalilova / According to estimations of Azerbaijani Finance Ministry, presently there are 5 to 6 companies who are experiencing problems with capitalization, the head of the State Insurance Control Department at the Finance Ministry, Namig Khalilov, reported.
"We do not intend to shut the companies down, as there are the interests of the insurers. We hope to work with the companies to assist them in expanding their statutory capital. However, these companies may not be able to continue if they do not raise their capital to the required level," Khalilov said.
According to Khalilov, capitalization is the focus of the Ministry of Finance and the schedule to raise the statutory capital by insurance companies in order to achieve at least AZN 3mln by 1 January, 2010 will be reconsidered.
On 1 January, 2007 statutory capital of insurance companies made up AZN 700,000 which is to be increased by AZN 1mln by the beginning of 2008.