Azernews.Az

By Nigar Abbasova

Azerbaijan Deposit Insurance Fund (ADIF) has so far paid compensations worth more than 218 million manats ($ 134.1 million) to depositors of the recently closed Dekabank, Kredobank, Zaminbank, Parabank, Caucasus Development Bank, Atrabank, Bank of Azerbaijan, Gandjabank and Texnikabank.

The Fund launched payment of compensations to the depositors of Dekabank, Kredobank, Zaminbank and Parabank on August 1, 2016.

The licenses of DekaBank, KredoBank, Parabank and Zaminbank were cancelled in accordance with the decision of the Financial Market Supervisory Body, dated July 21, 2016. The reason of a halt is the failure of banks to comply with statutory minimum capital requirements as well as manage their activities in a safe and prudent manner.

The Central Bank of Azerbaijan (CBA) revoked licenses of Caucasus Development Bank and Atrabank on January 27, 2016 due to their failure to meet the minimum aggregate capital requirement, which stands at 50 million manats ($31.8 million) as well as default of obligations to creditors. The decision on the bankruptcy was taken by the Baku administrative-economic court №1. Depositors of Caucasus Development Bank and Atrabank are able to appeal for the payment of compensations starting August 23.

The Central Bank of Azerbaijan (CBA) revoked the license of Texnikabank on February 2, 2016.

Payment of compensations to the depositors of Texnikabank started on February 12. Insurance payouts are made in branches of Muganbank, Rabitabank, Unibank and Kapital Bank.

The insurance covers all deposits in member-banks of the fund at an interest rate not exceeding three (for deposits in foreign currency) and 12 percent (for deposits in national currency), respectively, regardless the amount of the deposit.

ADIF operates since August 13, 2007.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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