ADIF completes compensation payments to depositors of 4 banks

By Azernews

By Sara Israfilbayova

Azerbaijan Deposit Insurance Fund (ADIF) has announced that payment of compensations to depositors of four closed banks - Dekabank, Kredobank, Parabank and Zaminbank, will be completed from August 1.

ADIF reported that payment of compensations for deposits is made within one year from the date of the first publication on their payment.

Nevertheless, depositors can extend the process of paying compensation, on an individual basis, by submitting to ADIF documents that confirm the inability to seek compensation within a year.

The licenses of these four banks were withdrawn in 2016 due to the discrepancy of their total capital with the minimum requirements [50 million manats-$29.4 million] and default to the creditors.

Currently, 31 banks are implementing their activities in Azerbaijan.

ADIF was founded on August 12, 2007 after the Law on Deposit Insurance was adopted by the Parliament [Milli Majlis] of Azerbaijan.

The purpose of establishing the Deposit Insurance Scheme is to prevent the risk of losing money deposited by individuals and to ensure the sustainability and development of the financial and banking system whenever banks and local branch offices of foreign banks become insolvent.

Deposits accepted by the Fund’s member banks with the annual interest rate 3 percent in the foreign currency and 15 percent in the national currency will be fully insured for 3 years, in accordance with the Law "On deposit insurance."