Issuing Compensation to Depositors of Four Liquidated Banks to Start August 1

On August 1 the payment of compensation to the physical depositors of four liquidated banks, Deka Bank, Credo Bank, Para Bank and Zamin Bank, will start.

The Executive Director of the Azerbaijan Deposit Insurance Fund (ADIF) Azad Javadov said at the press conference on July 29 the total amount of compensation will be 110 million 714 thousand AZN.

The compensation for Para Bank deposits will amount to 43 million 788 thousand manats. All in all, the total amount of the bank’s deposits is estimated at 87 million 619 thousand AZN.

In Zamin Bank the compensable deposits are 36 million 350 thousand AZN. The total amount of the deposits is 53 million 632 thousand AZN.

In Credo Bank the compensation will amount to 27 million 768 thousand AZN. The total amount of its deposits is 30 million 206 thousand AZN.

The compensation in Deka Bank will amount to 2 million 807 thousand AZN. The total amount of the deposits is 5 million 585 thousand manats.

Investors will receive compensation from the liquidated banks, in which their money is deposited, Javadov said, noting that the total amount of insured deposits as of June 30 reached 4.5 billion manats.

He also said that after the completion of the issuance of compensation for the insured deposits payments on all deposits, without exception, will begin in the four banks.

According to the ADIF data for the 1st quarter of 2016, 80% of the deposits placed in banks were in foreign currency.

From March 1, 2016 deposits of up to 12% per annum in manats and up to 3% per annum in foreign currency are considered insured, regardless of the amount of the deposit, and are placed in the ADIF member banks. This rule will be in effect until March 1, 2019.

Prior to March 1, 2016 deposits that did not exceed 30 thousand manats and not more than 12% per annum were considered insured. -0--