ADIF paying compensations for liquidated banks

By Azernews

By Nigar Abbasova

Azerbaijan Deposit Insurance Fund (ADIF) continues to pay compensations to depositors of the recently closed Dekabank, Kredobank, Zaminbank and Parabank.

The Fund has already paid compensations worth 38.4 million manats ($ 23.9 million).

As of August 11, depositors of Parabank and Zaminbank received 15.4 and 16.9 million manats out of the total compensations of 43.79 million manats and 36.35 million manats, respectively. The total volume of compensations to be paid to the depositors of Parabank amounts to 43.79 million manats ($27.680 million), while the number of insured depositors in the bank is 18,097.

The volume of compensable deposits in Zaminbank  amounts to 36.35 million manats ($22.97 million). The number of insured depositors amounts to 10,742.

The volume of compensations paid to the depositors of Dekabank totaled 2 million manats ($ 1.2 million) out of the payments’ total volume of 5.59 million manats ($ 3.48 million). The number of insured depositors is 133.

Kredobank’s depositors received compensations worth 4.1 million manats from the total volume of compensable deposits amounting to 30.21 million manats ($ 18.8 million).

The licenses of DekaBank, KredoBank, Parabank and Zaminbank were cancelled in accordance with the decision of the Financial Market Supervisory Body, dated July 21, 2016.

The Fund launched payment of compensations to the depositors on August 1, 2016. The overall size of deposits liable for compensation in the banks is 110.71 million manats ($ 69.84 million). Payments are made in the branches of liquidated banks.

The reason of a halt is the failure of banks to comply with statutory minimum capital requirements as well as manage their activities in a safe and prudent manner.

ADIF operates since August 13, 2007.Currently, 33 banks have licenses for implementing banking activities in Azerbaijan.