For Compensation to Depositors of Bank Standard Deposit Insurance Fund Will Receive Credit of AZN 460 Million at Central Bank

For the majority of compensated USD deposits in Bank Standard and for the issue of compensation the Deposit Insurance Fund will receive the currency directly from the Central Bank, avoiding currency exchange, said the Fund’s Executive Director Azad Javadov.

In his words, such a purchase will not affect the prices in the currency market.

“The population's deposits in Bank Standard are 603 million AZN, of which offset is 460 million AZN. Deposits in US dollars amount to 175 million and deposits in AZN are 172 million,” Javadov said.

The head of the Fund said the deposits of multi-currency basket (foreign currency + AZN - Ed.) will be returned in manats.

Javadov said that for the issue of compensation to depositors of Bank Standard the Foundation will take the credit in the Central Bank in the amount of 460 million AZN at the rate of 0.15% for 10 years.

Regarding the funds of legal entities in Bank Standard, the head of the Fund stressed that according to the law "On Banks," these funds are equalized to the uninsured deposits.

"In this case, the rule is applied alternately. That is, after the issue of compensation for insured deposits, if funds permit, it will be returned in turn to individuals with non-insured deposits and legal persons," he said.

Javadov said the Deposit Insurance Fund will act as the liquidator of Bank Standard and since October 11 investors will be able to begin to apply for return of funds.

"We will fulfill the obligation and the means of all the investors will be returned," the head of the Fund said. -71B-