Depositors of bankrupt bank in Azerbaijan compensated by over 88% of insured assets

As of July 1 the Azerbaijani Deposit Insurance Fund (ADIF) has carried out compensation payments worth 13 million manats on insurance event dated July 16, 2012 in relation to OJSC Royal Bank's bankruptcy, the fund's report posted on its website on Friday said. The paid money paid for compensation makes 88 percent of the compensated sum.

"According to the registry of obligations before the depositors, 5,759 insured depositors were provided with compensation totaling 26.5 million manats on insured deposits. Some 14.7 million manats or 55.5 percent were paid out of these funds," the report said.

The total number of Royal Bank's depositors amounted to 7,063 people.

Acceptance of applications for compensation to Royal Bank depositors has been suspended since July 23.

Payment of compensation has been carried out from August 1, 2012, through Muganbank, Bank Respublika and AGbank. The accounts of depositors in 33 branches of Royal Bank have been transferred under the service of 27 branches of three banks-agents.

The license for Royal Bank's banking activities was liquidated by the Central Bank of Azerbaijan (CBA) on July 12, 2012. On July 16 the closing of Royal Bank was officially recognized as an insured event, and a moratorium was initiated in order to fulfill its obligations before depositors.

By the decision of Baku Administrative-Economic Court No.1 taken on July 25, Royal Bank OJSC has been declared bankrupt, and the bankruptcy procedure was initiated. Azerbaijan Consulting Company Ltd was announced to be the liquidator of the bank.

The official exchange rate for July 26 is 0.7843 AZN/USD.


/Trend/