ADIF pays almost 748M manats to depositors

By Azernews

By Sara Israfilbayova

Azerbaijan Deposit Insurance Fund (ADIF) has paid compensations worth over 747.881 million manats ($439.70 million) to depositors of Parabank, Zaminbank, Dekabank, Kredobank, Caucasus Development Bank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank, United Credit Bank and Bank Standard.

Application for compensation from insured depositors was suspended at Bank of Azerbaijan on January 27,  at Gandjabank on February 4 and at Texnikabank on February 12.

Payment of compensations to depositors of four closed banks - Dekabank, Kredobank, Parabank and Zaminbank, was completed from August 1.

The licenses of all 11 banks were withdrawn in 2016 due to the discrepancy of their total capital with the minimum requirements [50 million manats-$29.4 million] and default to the creditors.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".