Birlik Bank has officially been declared bankrupt
Baku administrative decision of the Economic Court No. 1 of "Birlik Bank" is declared bankrupt and started the process of bankruptcy.
Appointed liquidator of the bank is PR VAM International Audit Consulting. Written claims of creditors must be made within 60 days from July 27.
Central Bank of Azerbaijan in January 2011 canceled the license of "Birlik Bank", basing its decision that the bank did not fulfill obligations to lenders and does not ensure the security of their own assets, and violated banking laws. Its management and ongoing activities were not reliable and was not carried out on the basis of prudential (regulatory) rules. In addition, the bank has consistently failed to fulfill instructions of the Central Bank.
A month earlier, the CBA is almost the same rationale has deprived the banking license of JSC Debutbank and JSC Kovsarbank. Against Kovsarbank they applied Article 16.1.10 of the Law on Banks - Implementation of activities not required by law. This includes the use of Sharia principles in the activities of Kovsarbank. And two weeks before the central bank abolished 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.
Some experts tend to think of the latest decisions of the CBA on the elimination of banks as a certain impetus to the consolidation of the banking sector. CBA said the revitalization process of consolidation of banks already in 2010, and these activities were the main form the basis of policies of monetary and financial stability in 2011. Recently, the head of the Central Bank said that after the summer they are going to start concrete negotiations with the banks on the issue of consolidation, because of the relatively weak association of banks will provide capital consolidation and increased resources.
Banks that do not consolidate their capital will be invited to transform into NBCO. -15B -
Economics
-
Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
-
According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
-
The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
-
"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
Leave a review