Depositors of closed Azerbaijani banks to receive compensation

Depositors of closed banks will receive compensation, the executive director of the Azerbaijan Deposit Insurance Fund (ADIF), Azad Javadov, said.

"Despite the fact that the volume of ADIF’s funds stand at 132 million in the manat equivalent, we agreed with the Central Bank of Azerbaijan rendering financial assistance, if necessary," Trend cited him as saying.

"First, it is not known whether all of these banks have been declared bankrupt. Secondly, the exact amount of deposits in these banks may differ from the information provided by the banks. For example, in the case of the Bank of Azerbaijan, it was discovered that the insured deposits in the bank amount to 24 million manats, rather than 36 million manats. In other words, the total amount of compensation we have to pay might be much less," Javadov noted.

The Central Bank of Azerbaijan revoked the licenses of seven banks in 2016 – Texnikabank, Bank of Azerbaijan, Gandja Bank, United Credit Bank, NBCBank, Atra Bank and the Caucasus Development Bank.