Azerbaijan names authority to be engaged in collection of closed banks' loans

By Trend

The Azerbaijan Deposit Insurance Fund (ADIF) itself will be engaged in collecting loans in liquidated banks (AGBank, Amrah Bank, Atabank and NBC Bank), Executive Director of the ADIF Tural Piriyev told Trend.

“If a person has a deposit and a loan in one of the liquidated banks, the loan is automatically calculated from the deposit and the balance is returned to the bank's customer. If the loan amount exceeds the amount of deposit, then the deposit amount is calculated from the loan amount. The customer pays the balance in this case as well,” Piriyev said.

“Earlier, bank agents were contacted upon such cases, and there were no problems while resolving such issues,” said the director.

He also noted that the issue of deposit insurance of legal entities and individual entrepreneurs in banks in Azerbaijan is not yet on the agenda, and so far no discussions have been held on this issue, as a result of which more attention is currently being paid to deposit insurance of individuals.

He also emphasized that the liquidated banks hold about 100 uninsured deposits, of which about 30 are held in AGBank, 21 - in Amrah Bank, 26 - in AtaBank and approximately the same number - at NBC Bank.

By the decision of the Central Bank of Azerbaijan (CBA) dated April 28, 2020, licenses issued to Amrah Bank and Atabank for banking activities were revoked. In accordance with the decision of the ADIF Board of Trustees, Kapital Bank OJSC was chosen as an agent bank for reimbursing protected deposits in Atabank and Amrahbank.

In accordance with article 28.3 of the Law of Azerbaijan on deposit insurance, the ADIF accepts applications of depositors during the year from the date of the first publication of the notification about payment of compensation.

Despite the fact that the CBA banned some banks to accept deposits, they continued to accept them from citizens. Therefore, a fair dissatisfaction of citizens is presently being observed.