Depositors of closed banks receive compensations
By Nigar Abbasova
Azerbaijan Deposit Insurance Fund (ADIF) has so far paid compensations worth 949,994 manats ($ 599,327) to depositors of the recently closed banks. The Fund has launched payment of compensations to the depositors of Dekabank, Kredobank, Zaminbank and Parabank since August 1, 2016.
The overall size of compensated deposits in the banks is 110.71 million manats ($ 69.84 million). Payments are made in the branches of liquidated banks.
The volume of compensations so far paid to the depositors of Parabank is 561,529 manats ($ 354,255), while the total volume of compensations to be paid to the depositors of the bank amounts to 43.79 million manats ($ 27.680 million). Depositors of Zaminbank have already received compensations worth 199,830 manats ($ 126,068), while the volume of compensable deposits in the bank amounts to 36.35 million manats ($ 22.97 million).
The volume of compensations paid to the customers of Dekabank amounted to 123,365 manats ($ 77,827). Deposits worth 2.807 million manats ($ 1.774 million) are compensable.
Depositors of Kredobank have already received compensations worth 65,270 manats ($ 41,177), from the total volume of compensable deposits amounting to 27.768 million manats ($ 17.553 million).
An insurance event happened in the banks following the decision of the Financial Market Supervisory Body (FMSB) to abolish their licenses, due to their failure to meet necessary requirements specified in the relevant legislation.
The insurance covers all deposits in member-banks of the Fund at an interest rate not exceeding three (for deposits in foreign currency) and 12 percent (for deposits in national currency), respectively, regardless the amount of the deposit.
The recently adopted law “On full insurance of deposits” envisages that within three years, the public deposits, with the annual interest rate not exceeding the maximum level set by the Council of Trustees of the ADIF should be insured, regardless of the amount of deposits in banks that are fund-members.
The compensation of uninsured deposits should be paid according to the “Law on deposit insurance” should the insurance case occur in ADIF member-banks.
ADIF has been appointed a liquidator of four banks on July 21. Temporary administrators were appointed to the banks on July 22.
ADIF operates since August 13, 2007.Currently, 33 banks have licenses for implementing banking activities in Azerbaijan.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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