Depositors of Royalbank compensated at 87.8%

As of April 1 this year, the insured depositors of bankrupt Royalbank were paid compensation totaling 12.9 million manat. This is stated in the message of the Azerbaijan Deposit Insurance Fund (ADIF). Through 27 branches of three banks - agents (Bank Respublika, MuganBank, AGBank) ADIF will pay compensation to the insured depositors of Royalbank 14.712 mln manats. Overall, the total amount of insured deposits of the bank is 26.5 million manat. Thus, paid 87.8% of the total compensation has been paid. The process of issuing payments started on 1 August 2012 and will last until July 20, 2013.

The Central Bank of Azerbaijan on July 12 last year abolished the license of Royalbank, because of non-bank requirements to a minimum level and a total capital adequacy, non-performance of obligations to creditors, including the management and ongoing activities were not reliable, as well as the failure of written instructions of the Central Bank.

The Foundation 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 51.3 million manat. The maximum amount of insurance compensation for a contribution is 30,000 manat. Since 1 June 2010 the fund has not insured deposits at interest rates higher than 12%. -15D-