Azerbaijan's Central Bank: Revocation of AtaBank & Amrahbank licenses not related to COVID-19

  29 April 2020    Read: 889

There are currently old, inherited from the past problems in the banking sector of Azerbaijan that cover only 3-4 percent of the sector’s assets, that is, they are not systemically significant, Chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov said in an interview to the Azerbaijan Television and Radio Broadcasting Company (AzTV), reports citing Trend. 

“CBA appointed administrators to four banks on April 27, and on April 28, licenses of two of them were revoked. One of them was AtaBank OJSC that had problems for a long time and depositors could not return their money. I have repeatedly expressed my opinion about this bank and said that as soon as the law on full deposit insurance is extended, depositors will be able to return their money,” Rustamov noted.

“Another bank is Amrahbank OJSC. Of course, problems of these banks are not new, and have nothing to do with the coronavirus pandemic (COVID-19) and with the decline in oil prices. The problems of banks were discussed by Financial Stability Council, and CBA made certain recommendations, on the basis of which we revoked the licenses. We will provide the population with access to their deposits in a short time, transfer money to one of the country's stable banks, and people will be able to keep their money with the banks or withdraw it,” said the chairman.

“The return of deposits of these banks will not be carried out at the expense of the state budget. Both banks are members of the Azerbaijan Deposit Insurance Fund (ADIF). Refunds will be made from paid membership dues. This issue is a consolidated obligation of banks. We will give them temporary loans. Closed banks will repay loans from the funds received from the sale of assets. It is possible to repay loans in 4-5 years," Rustamov added.

More about: CBA   Elman-Rustamov