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Kauthar Bank sues CBA

17 January 2011 13:30 (UTC +04:00)

According to Baku Administrative & Economic Court #1, the main pretension of commercial bank is connected with abolishment of decision on abolishment of CBA licence.

Kauthar Bankâ€™s CEO Heydar Ibrahimov said that, CBAâ€™s decision on abolishment of Kauthar Bankâ€™s licence is groundless. CBA has violated the laws in this process: â€œThe current authorized capital of bank makes more than AZN 12 mln and we thought to increase it by AZN 3-4 mln, more. This analogical decision was adopted by CBA in 2001. But, our licence was restored at that time. We hope that, bankâ€™s licence will be restored again, by appropriate decision of the courtâ€.

He also noted that all operations of the bank has been stopped. CBA has attached permanent administrators: â€œNo employee of the bank has been dismissedâ€.

Remind that, CBA has abolished the licences of Kauthar Bank and Debut Bank due to violation of bank legislation, including not realizing the management in accordance to the proxy and prudential rules, disobedience of the CBAâ€™s regular and stable orders.

Kauthar Bank had been in operation since 1989. The bank operated 2 branches, 1 ATM and 25 staffs.