Compensation to Depositors of Failed Banks Continued

The depositors of the bankrupt JSC Tekhnika  Bank, Bank of Azerbaijan and Gandja Bank have received a total of 49 million 561 thousand mantas as compensation for the insured deposits.

According to the Azerbaijan Deposit Insurance Fund (ADIF), before all, on January 29 began the payment of compensation for insured deposits in the Bank of Azerbaijan, where the Fund’s agents are Mugan Bank and Rabita Bank. Approximately 6.6 thousand depositors have received 21 million 825 thousand manats from the beginning.

From February 4 depositors in Gandja Bank have been paid compensation amounting to more than 636,000 manats, and from February 12, Tekhnika Bank depositors have got together a little more than 27.1 million AZN. Capital Bank and Uni Bank have also been appointed as agents in this case.

Recall, the largest amount of insured deposits was registered at JSC Tekhnika Bank – 123,166,426 manats to 20,340 depositors.

The bankrupt banks, according to the decision of the Central Bank of Azerbaijan, did not fulfill the requirements to the minimum total capital of AZN 50 million, had a low capital adequacy ratio and the problem of meeting the obligations to their creditors, and were out of order in prudential reporting.

ADIF operates within the law "On deposit insurance" of December 29, 2006. It aims to guarantee the return of savings in case of bank failure. On February 1, the ceiling interest rate (12%) for insured deposits was removed, and the deposits are returned in the sum up to 30,000 manats per bank account. --17D-