Depositors of Amrahbank, Atabank to be refunded from June
By Akbar Mammadov
The process of returning funds to depositors of Atabank OJSC and Amrahbank OJSC, whose licenses have been canceled since April 28, will begin on June 1, said Elman Rustamov, Chairman of the Board of the Central Bank of Azerbaijan.
"According to the law, the process of returning funds to depositors should begin within three months, but we will try to open access to depositors to their funds at the end of this month, or, at the latest, from June 1," Rustamov said at a press conference on May 1.
As previously reported, the deterioration of the financial situation of the two banks began long ago. Atabank, for example, cannot fulfill obligations to return deposits to depositors for a long time. The Central Bank conducted a comprehensive audit in both credit organizations, which revealed serious financial losses, banks lost all their capital and they are in a state of bankruptcy.
Bank shareholders were informed about the results of the inspections, and they were invited to carry out additional capitalization. “However, they did not use this opportunity,” the CBA noted earlier.
On April 30, 2020, the Baku Court of Appeal declared Atabank and Amrahbank bankrupt and launched the bankruptcy procedure. Deposit Insurance Fund appointed as liquidator of both banks.
Thus, the total number of banks in Azerbaijan having a license decreased to 28.
The financial condition of the mentioned banks has been on the decline for some time. AtaBank for a long time could not fulfill its obligations to return the clients' deposits. The share of these two banks having problems in the sector’s assets is 2.1 percent while in the loan portfolio - three percent.
Two other banks - AG Bank OJSC and NBC Bank OJSC had temporary administrators appointed to them. The issue of withdrawing their licenses has not been discussed yet.
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Akbar Mammadov is AzerNews’ staff journalist, follow him on Twitter: @AkbarMammadov97
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