ADIF pays more than 747M manats to depositors

By Azernews 

By Sara Israfilbayova

Azerbaijan Deposit Insurance Fund (ADIF) has paid compensations worth over 747.79 million manats ($439.67 million) to depositors of Parabank, Zaminbank, Dekabank, Kredobank, Caucasus Development Bank, Atrabank, Bank of Azerbaijan, Gandjabank, Texnikabank, United Credit Bank and Bank Standard.

Receiving applications for compensation from insured depositors of Bank of Azerbaijan has been suspended since January 27, Gandjabank - since February 4 and Texnikabank - since February 12.

Payment of compensations to depositors of four closed banks - Dekabank, Kredobank, Parabank and Zaminbank, was completed from August 1.

The licenses of all 11 banks were withdrawn in 2016 due to the discrepancy of their total capital with the minimum requirements [50 million manats-$29.4 million] and default to the creditors.

Currently, 31 banks are implementing their activities in Azerbaijan.

ADIF was founded on August 12, 2007 after the Law on Deposit Insurance was adopted by the Parliament [Milli Majlis] of Azerbaijan.

The purpose of establishing the Deposit Insurance Scheme is to prevent the risk of losing money deposited by individuals and to ensure the sustainability and development of the financial and banking system whenever banks and local branch offices of foreign banks become insolvent.