ADIF paying compensations for closed banks
By Nigar Abbasova
Azerbaijan Deposit Insurance Fund (ADIF) is continuing to pay compensations to the depositors of the recently closed Dekabank, Kredobank, Zaminbank and Parabank.
ADIF has so far paid compensations worth 4.96 billion manats ($3.12 billion) to depositors of the recently closed banks, the Fund reported on August, 3. The Fund launched payment of compensations to the depositors on August 1, 2016. The overall size of deposits liable for compensation in the banks is 110.71 million manats ($ 69.84 million). Payments are made in the branches of liquidated banks.
Depositors of Parabank have so far received 2.27 million manats ($1.42 million), while the total volume of compensations to be paid to the depositors of the bank amounts to 43.79 million manats ($27.680 million). The number of insured depositors in the bank is 18,097.
The volume of compensations paid to the customers of Zaminbank amounted to 1.85 million manats ($1.16 million), while the volume of compensable deposits in the bank amounts to 36.35 million manats ($22.97 million). The number of insured depositors amounts to 10,742.
The volume of compensations paid to the depositors of Dekabank totaled 440,360 manats ($ 277,252). Deposits worth 2.807 million manats ($ 1.774 million) are compensable, while the number of insured depositors is 133.
Depositors of Kredobank have already received compensations worth 397,930 manats ($250,538), from the total volume of compensable deposits amounting to 27.768 million manats ($17.553 million). As many as 4,542 depositors are insured.
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 reason of a halt is the failure of banks to comply with statutory minimum capital requirements as well as manage their activities in a safe and prudent manner.
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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