Azerbaijan Deposit Insurance Fund has started selection process of Agent bank for reimbursement to Royal Bank’s depositors.

According to ADIF, under the letter # 06/05-1747 of Central Bank of Azerbaijan dated to 13.07.2012, preparatory works for selection of Agent Bank and reimbursement have been started in accordance with the decision of Fund dated to 14.07.2012. 

Note that, 98% of depositors in Royal Bank is protected by Fund. Deposits of depositors owning up to AZN 30,000 will be repaid fully. Fund says the reimbursement date and place will be informed recently. 

Note that, as minimum amount of total capital and its adequate do not meet the requirements, as the bank can not fulfill its obligations in front of creditors and as its current activity is not realized reliably and prudentially, as well as as it did not fulfilled written tasks of the CBA, the license of Royal Bank has been deleted under the articles #16.1, 16.1.6, 16.1.7, 16.1.9, 16.1.16 and 16.1.18 of the law on Bank.

According to the mentioned law, from July 13, 2012, Royal Bank OJSC has been appointed temporary administrator. The temporary administrator operates at bank’s headquarters.

CBA told that, in order to start bankruptcy procedures about Royal Bank, the CBA will appeal the courts: ‘According to article #62.3 of the Law on Banks, after submission of petition for start of bankruptcy procedures by the CBA, an immediate moratorium law will come into the force on the Bank’.

Remind that, Royal Bank had been in operation since 1993. The bank operated 32 branches, 31 ATMs and 113 POS-terminals across the country. 

www.apa.az