Azerbaijan makes important decision on closed banks

Finance Materials 28 December 2018 16:40 (UTC +04:00)

Baku, Azerbaijan, Dec. 28

By Sara Israfilbayova - Trend:

Starting from 2019, transactions involving assets of banks closed in Azerbaijan will be exempt from value added tax (VAT), the Azerbaijani Ministry of Taxes told Trend Dec. 28.

The transactions involving bankrupt banks’ assets, sold since Jan. 1, 2017, will be exempt from VAT until 2020, according to the amendments to Azerbaijan’s Tax Code, which will come into force next year.

In 2015-2016, EuroBank, Azerbaijan Credit Bank, Parabank (transformed into an NBCO), Zaminbank, Dekabank, Kredobank, DemirBank, Caucasus Development Bank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank, United Credit Bank and Bank Standard were closed in Azerbaijan.

The process of liquidation of EuroBank, Azerbaijan Credit Bank and Parabank has already been completed.

The licenses of these banks were revoked due to the non-compliance of their total capital with the regulator’s minimum requirement of 50 million manats and failure to fulfill obligations to creditors.

The total assets of these banks amounted to several billion manats.

The assets of the closed banks in Azerbaijan are sold by the Deposit Insurance Fund.


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