As of April 4, Azerbaijan Deposit Insurance Fund (ADIF) paid compensations worth 45.5 million manats to the depositors of Azerbaijan’s DemirBank OJSC, the license of which was revoked in December 2017, the ADIF said in a message on April 4.
The volume of compensated deposits in DemirBank totals 63.5 million manats, while the volume of uncompensated deposits amounts to 28.3 million manats.
DemirBank’s license was revoked on December 23, 2017. The Financial Market Supervisory Authority (FIMSA) of Azerbaijan said the license was revoked due to a discrepancy between the total capital of the bank and the minimum capital requirement set for banks, adding that the adequacy ratio of the aggregate capital was lower than 3% stipulated by the legislation.
The bank also lacked the capacity to fulfill its obligations to creditors.
For the first time, payments of compensations to depositors of bankrupt banks are carried out in the non-cash form. DemirBank’s depositors can receive compensations via both the Khazri instant money transfer system and Kapital Bank’s personal debit cards.
The depositors can receive compensations in 26 branches of Kapital Bank OJSC until February 1, 2019. (Trend/Business World Magazine)
