Property of closed banks to be sold online

/By Azernews/

By Nigar Abbasova

Azerbaijan Deposit Insurance Fund (ADIF) will sell properties of liquidated banks at auction, said Azad Javadov, Executive Director of ADIF.

The property will be put up for sale on the new website of the Fund - emlakadif.az, which will start to function in the short run.

Javadov told reporters that the Fund is eligible to sell the property of those banks, where the Fund acts as a liquidator. He mentioned that the Fund has already received appeals to act as a liquidator in DekaBank, KredoBank, Parabank and Zaminbank, the licenses of which were revoked by the decision of the Financial Market Supervisory Body last week.

The licenses have been revoked due to the failure of banks to meet necessary requirements specified in the relevant legislation.   

“All properties that were used by the banks including those taken by banks as a credit pledge will be offered for sale,” he added.

The Fund is planning to create a show-room, which will allow those who want to acquire a property to familiarize with it beforehand.

 Javadov said that currently two banks are in the stage of liquidation including Evrobank and Azerbaijan Kredit Bank. The fund is implementing compensation payments on Bank of Azerbaijan, TexnikaBank and Gandja Bank.

Meanwhile, United Credit Bank, AtraBank and Caucasian Bank of Development are trying to restore their licenses judicially.

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.

Earlier, Trend reported that the Fund is planning to attract a loan from the country’s Central Bank (CBA) to pay compensations to depositors of four closed banks.

Javadov said that ADIF possesses nearly 26 million manats ($16.5 million) and it plans to receive about 100 million manats ($ 63.5 million) from the CBA.

However, the funds may be required only if an insured event is announced in those banks, since ADIF makes payments only in case of bankruptcy of financial institutions.

The volume of deposits at the recently closed four banks reaches approximately 187 million manats, including 47 million manats of uninsured deposits. About 80 percent of deposits are in foreign currency.

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

Licenses of six banks including AtraBank, Caucasus Development Bank, Bank Technique, Ganja Bank, Bank of Azerbaijan and United Credit Bank,  have been cancelled in early 2016.