ADIF to mid-August will complete the payment of compensation to depositors and RoyalBank-

Azerbaijan Deposit Insurance Fund (ADIF) plans within 14 days to completethe  payment of compensation to depositors of bankrupt RoyalBank. This was announced at a press conference, Foundation Executive Director, Azad Javadov.

In total, starting from August 1 through the branches of three banks - compensation payments will be made to 6572 investors  totalling 17.34 million manat. Of these, Muganbank will pay 3,004 depositors 8.02 million manat, AGBank - 6.56 AZN (2,658 depositors) and Bank Respublika – 2.76 million manats (910 pensioners). To process payments 60 ATM and 27 branches of banks will be used, said A.Javadov.

    Head of the Fund does not consider it necessary to increase the maximum amount of insurance compensation to a contribution today, and so is the highest among CIS countries. However, he does not rule out future increases in the  interest rate ceiling on insured deposits from the current 12%, arguing that there has been a downward trend in interest rates on deposits attracted by banks.

    CBA on July 12 this year eliminated the license of Royalbank, in relation to non-compliance with Bank requirements and the adequacy of the minimum level of total capital, non-fulfillment of obligations to creditors, including the management and ongoing activities were not reliable, as well as failure to written instructions of the Central Bank.

    The Fund has operated since August 2007. Its members include 42 of the 43 banks operating in the country. The total amount of its insurance reserves now stands at 48 million manat. The maximum amount of insurance compensation for a contribution is 30,000 manat. On June 1, the 2010 Fund does not insure deposits and  interest rates which exceed 12% per annum. - 15C -