TODAY.AZ / Business

ADIF to sell closed banks’ properties at auction

18 April 2017 [17:25] - TODAY.AZ

By Azernews


By Kamila Aliyeva

The Azerbaijan Deposit Insurance Fund (ADIF) plans to sell properties of the closed banks at auctions.

ADIF Executive Director Azad Javadov, who addressed a press conference in Baku on April 18, said that negotiations are underway with two specialized centers in this regard.

The year 2016 saw big changes in the country’s banking sector, as 11 banks were closed due to failure to meet the set requirements.

The licenses of the Caucasus Development Bank, United Credit Bank, Bank Standard, Zaminbank, Dekabank, Kredobank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank and Parabank were revoked, as their assets were not classified in line with the law, and they didn’t create adequate reserves and their aggregate capital did not meet the minimum requirements.

The total volume of assets of the closed banks exceeds several billion manats, and liabilities - 2.9 billion manats (over $1.7 billion).

Javadov said that as of today, the ADIF paid compensations worth 727 million manats ($433,661 million) to almost 22,700 depositors of the Caucasian Development Bank, Bank Standard, Zaminbank, Dekabank, Kredobank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank and Parabank paid about.

The depositors of the closed banks should be paid more 26.837 million manats (over $16 million).

As many as 175,000 depositors of 10 banks have not yet received their compensations, he added.

The volume of deposits of 106,000 depositors does not exceed the sum of 1 manat, while the funds of almost 687,000 people do not exceed 1,000 manats ($596), according to Javadov.

In total the liabilities of all closed banks reach 2.9 billion manats, including individuals’ deposits in the amount of 1.13 billion manats.

However, according to Javadov, some of the banks' liabilities are denominated in foreign currency, therefore, the total amount of liabilities can vary due to the exchange rate difference.

Javadov added that the Fund intends to complete payments on uninsured deposits in Dekabank this month. In general, the remaining amount of uninsured deposits in the bank is 1.2 million manat.  As of today, the ADIF paid compensations worth around 3 million manats to the bank's clients.

The ADIF will start paying compensation to depositors of United Credit Bank on April 19. Clients of the bank will be able to receive their funds at the ADIF office.

The amount of compensation to be paid to depositors of United Credit Bank will be 2.1 million manats, Javadov stated.  The volume of deposits in the bank amounts to 3.6 million manats. The number of insured depositors in the bank is 472.

Furthermore, the ADIF Supervisory Board may consider the possibility of changing the uppermost limit of the interest rates on insured deposits after April 20

He said that after April 20, the results of the first quarter and the changes in interest rates will be considered.

The uppermost limit of the interest rate for individuals’ insured deposits in foreign currency is 3 percent. The maximum interest rate for individuals’ manat deposits covered by insurance is 15 percent.

Some 32 banks are currently implementing their activities in the country.   ADIF has been operating since August 13, 2007.

URL: http://www.today.az/news/business/160344.html

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