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ADIF reveals preliminary volume of compensations

22 August 2016 [13:53] - TODAY.AZ

By Azernews

By Nigar Abbasova

Preliminary volume of compensations to be paid to the depositors of recently closed Caucasus Development Bank and Atrabank is 15.4 million manats ($ 9.50 million), Azerbaijan Deposit Insurance Fund (ADIF) Executive Director, Azad Javadov told Trend.

“Total volume of deposits in Atrabank stands at 31 million manats ($ 19.12 million), while some 13.9 million manats ($ 8.57 million) are compensable. The volume of deposits in Caucasus Development Bank is approximately 5 million manats (3.08 million), while about 1.5 million manats ($ 0.92 million) will be compensated by ADIF,” he said.

Javadov underlined that sums are preliminary and approximate and the exact volume will be defined soon.

He also said that the Fund is planning to compensate up to 30,000 manats ($ 18,508) on each insured deposit as the decision on the withdrawal of licenses was taken before the adoption of a law “On full insurance of deposits” . The law envisages that within three years, the public deposits, with the annual interest rate not exceeding the maximum level set by the Council of Trustees of the ADIF should be insured, regardless of the amount of deposits in banks that are fund-members. 

He added that ADIF has recently taken a decision to decline the services of agent-banks in the process of payment of compensations to the depositors of the closed banks. The decision is related with the fact that population has more trust in their banks and the process goes more rapidly and easier this way. “As with the liquidation of Zaminbank, Parabank, Dekabank and Kredobank, we have decided not to resort to the assistance of agent-banks, therefore depositors will be able to get compensations in the offices and branches of the banks where they have made deposits,” he said.  

The decision on the bankruptcy was taken by the Baku administrative-economic court ?1. ADIF has been appointed a liquidator of the two banks. The Central Bank of Azerbaijan (CBA) revoked licenses of the banks 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. Depositors of Caucasus Development Bank and Atrabank are eligible to apply for compensations starting August 22.

Meanwhile, ADIF is continuing paying of compensations to depositors of the Dekabank, Kredobank, Zaminbank and Parabank. ADIF recently reported that the funds on the accounts of more than 55 percent of depositors in the banks do not exceed the sum of 1 manat ($ 0.61). The total number of insured depositors is in the banks amounts to 31,959 people, while the funds of approximately 17, 786 depositors do not exceed 1 manat. The worth of deposits of some 17,786 people ranges from 1 up to 1,000 manats ($ 0.61 - 616.9), while funds of 2,639 depositors exceed the sum of 1,000 manats.

ADIF operates since August 13, 2007.Currently, 33 banks have licenses for implementing banking activities in Azerbaijan.

URL: http://www.today.az/news/business/153575.html

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