Para Bank Transformed into Para Non-banking Credit Organization

The Financial Markets Supervisory Authority (FIMSA) licensed the non-banking credit organization Para for the right to issue loans, FIMSA said.

FIMSA also allowed the organization to open 20 branches.

As it is known, OJSC Para Bank was deprived of the license by FIMSA on July 21, 2016. The Deposit Insurance Fund, which was appointed the bank's liquidator, issued 43 million manat as compensation for the insured deposits.

Subsequently, the issue of transforming the bank into a non-bank credit institution was agreed between the Fund and the shareholders of Para Bank.

The organization's charter was registered on December 2, 2016. On February 9, 2017, the process of forced liquidation of Para Bank was suspended.

The bank's liabilities to legal entities and individuals were satisfied in the amount of AZN 39 million. The remaining liabilities, however, were settled with the consent of the creditors.

Thus, for the first time, the process of transforming a bank into a non-bank credit institution was implemented.   ----71D