72.6% of Depositors of Four Closed Banks Compensated

The Azerbaijan Deposit Insurance Fund (ADIF) has compensated for 72.6% of the depositors of the closed four banks, Para Bank, Zamin Bank, Credo Bank and Deka Bank, said the Fund.

According to Turan, the total number of depositors of these banks is 31,959 people.

So far, 1,915 depositors have been returned 56,455 manats.

Earlier, the Executive Director of the ADIF, Azad Javadov, said the total amount of compensation for the four banks will be 110 million 714 thousand manats.

The Fund reports also stated that the compensation is paid to each depositor in a time and in full.

‘The payment of compensation to a depositor in parts is contrary to the law and is not provided by the ADIF system program,’ the Fund said in a statement.

The Fund also pointed out that if a depositor has several deposits in one bank, or at several branches of the bank, they are added together, and compensated as a single deposit.

On 21 July 2016 the Financial Markets Control House (FMCH) of Azerbaijan withdrew the licenses of Deka Bank, Credo Bank, Para Bank and Zamin Bank. As the cause of revocation of the licenses, FMCH stated ‘the assets of these banks are not classified in accordance with the law, they do not have the necessary reserves, and the total capital does not meet the minimum requirement of 50 million manats.’    -----73D