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Azerbaijan Deposit Insurance Fund to attract loan from Central Bank

22 July 2016 10:38 (UTC +04:00)

Baku. Yegana Lachinzade – APA-Economics. Azerbaijan Deposit Insurance Fund (ADIF) will attract a loan worth 100 million manats from the country’s Central Bank to pay compensations to depositors of four closed banks, ADIF Executive Director Azad Javadov told reporters on Friday.

Javadov noted that ADIF should pay nearly 127 million manats to depositors of closed banks, while its funds stood at 26 million manats as of early 2016. Therefore, ADIF plans to receive about 100 million manats from the Central Bank.

The licenses of DekaBank, KredoBank, Parabank and Zaminbank have been revoked in Azerbaijan, head the Board of Directors of the country’s Financial Market Supervisory Body, Rufat Aslanli said during a press conference July 22.

The relevant decision was made by the Financial Market Supervisory Body dated July 21, 2016.

“The licenses of those banks have been revoked, as their assets haven’t been classified in line with the law, they haven’t created adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats],” said Aslanli. “In general, they haven’t fulfilled the regulator’s instructions.”

Aslanli noted that the insured deposits in the four banks amounted to AZN 140,300,000 as of July 22, 2016.