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Azerbaijani Central Bank, Deposit Insurance Fund talk measures to return funds to depositors of closed banks

Finance Materials 14 July 2020 17:41
Azerbaijani Central Bank, Deposit Insurance Fund talk measures to return funds to depositors of closed banks

BAKU, Azerbaijan, July 14

By Fidan Babayeva – Trend:

The Central Bank of Azerbaijan (CBA) and the Deposit Insurance Fund are taking all necessary measures to ensure the return of funds in the manner prescribed by the law to depositors who have problems in closed banks such as AtaBank OJSC, Amrahbank OJSC, AG Bank OJSC and NBC Bank OJSC, Trend reports referring to the CBA.

As known, the licenses of AtaBank OJSC, Amrahbank OJSC, AG Bank OJSC and NBC Bank OJSC were canceled by CBA due to the complete loss of capital, their failure to fulfill obligations to creditors and false accountancy.

In accordance with the decisions of the administrative board of the Baku Court of Appeal dated April 28 and May 14, 2020, these banks were declared bankrupt. The Deposit Insurance Fund was appointed as their liquidator.

"The register of transactions on closed banks was transferred to the Deposit Insurance Fund,” the message said. “The process of paying compensation on the deposits was launched in a short period of time. Kapitalbank OJSC was chosen for paying compensation on deposits of AtaBank OJSC, Amrahbank OJSC upon the decision of the board of trustees of the Deposit Insurance Fund while Azerbaijan International Bank - for paying compensation on deposits of AG Bank OJSC and NBC Bank OJSC.

The process of paying the compensation on deposits in AtaBank OJSC and Amrahbank OJSC up to 30,000 manat ($17,647) has been launched since June 1, 2020, and the compensation on deposits worth more than 30,000 manat ($17,647) - since July 1, 2020.

“The compensation on deposits worth up to 30,000 manat ($17,647) in AG Bank and NBC Bank have been paid since June 16, 2020, and the compensation on deposits worth more than 30,000 manat ($17,647) will be paid from July 15, 2020,” the message said.

The CBA stressed that as a whole, as of today, compensation worth 229.7 million manat ($135 million) was paid to 12,900 depositors.

“The CBA and the Deposit Insurance Fund found violations in the process of revoking the licenses of banks and their liquidation,” the message said. “A corrective measure was applied on January 27, 2020, to completely stop accepting deposits from individuals.”

However, NBC Bank did not comply with the order on additional corrective measures and these facts were revealed by the interim administrator appointed by the CBA.

Along with the lack of capital and other factors, this factor was taken into account when revoking the bank’s license, CBA added.

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