Substantial changes in the Law "On Banks"

At the plenary session of the parliament on Friday, the law "On Banks" was amended.  The bill was presented by the chairman of the parliamentary committee on economic policy Ziyad Samadzade. The changes involve a voluntary restructuring of the bank's liabilities. So, the bank can apply to the court for voluntary restructuring of its obligations, and the court must consider this appeal within 10 calendar days.

In addition, the law introduces the concept of "banks-bridges", the creation of which is possible in the presence of problems with banks. The banks-bridges will be temporarily transferred to healthy assets and liabilities of the troubled bank, which, after some time, will be put up for sale.

The bill provides that, if it is not possible to voluntarily rebuild problem banks, the supervising agency for financial markets obtains the right to force transfer of deposits of shareholders and decision-makers into bank shares, to sell part of the bank's shares to raise funds for further repayment of the bank's obligations.

According to the changes, administrators and shareholders of banks responsible for its problems must pay the damage caused by their property. In other words, the property of shareholders and administrators of such banks will be confiscated and sold. -71D-