Bank Standard's creditors committee disagrees with liquidation plan
By Kamila Aliyeva
The total volume of liabilities of Bank Standard to individuals and legal entities amount to 1.199 billion manats (about $705 million), Chairman of the Bank’s Creditors Committee Akram Hasanov said at a committee meeting in Baku May 24.
“As many as 45,235 creditors of Bank Standard have been registered so far,” Hasanov said. “Of them, 43,272 creditors are individuals, and the bank’s liabilities to them amount to 156 million manats (about $91.7 million). As many as 1,963 creditors are legal entities, and the bank’s liabilities to them amount to 1.043 billion manats (about 61.3 million). Of them, 154 million manats (about $90.5) account for the liabilities to the Central Bank of Azerbaijan (CBA).”
The total number of Bank Standard’s real estate objects is 33, and 24 of them are pledged to the CBA, he said, noting that 42 million manats are expected to be generated from the sale of the Bank’s assets.
Bank Standard’s license was revoked October 1, 2016, and on October 4, the bank was declared bankrupt. The bank’s depositors received compensation worth 436.6 million manats (about $256.8 million) since then.
Hasanov further added that the Bank Standard's Creditors Committee can appeal against the liquidation plan of the bank.
Under the liquidation plan, the funds will firstly be returned to the Azerbaijan Deposit Insurance Fund, which is contrary to the Constitution, he said.
"In no country in the world the Deposit Insurance Fund receive funds in the first place, first of all, the funds should be paid to individuals and legal entities. If the court approved the existing liquidation plan, we are ready to appeal this decision," Hasanov stated.
The creditor's committee consists of nine individuals, representatives of the National Entrepreneurship Support Fund, Khazar University, Public Association for the Protection of Rights of Azerbaijani Youth, Azercell Telecom, SOCAR Cape, SOCAR Marketing, Standard Insurance, GESCO, Leasing Company UniLeazing, Insurance company Qala Life and non-bank credit organization FINCA Azerbaijan.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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