Azerbaijan Deposit Insurance Fund (ADIF) has been appointed the liquidator of Texnikabank OJSC, the license of which was revoked by the Central Bank of Azerbaijan (CBA), head of the fund Azad Javadov told Trend Apr. 15.
He said that this decision was made by the Financial Market Supervisory Body of Azerbaijan.
“This does not mean that the liquidation process will start over again,” Javadov said. “Registration of claims of the bank’s creditors continues at the moment, and the process will continue in the manner established by law.”
Azerbaijani Texnikabank OJSC has been declared bankrupt by the decision of the Baku Administrative Economic Court No.1 from February 10, 2016.
In accordance with the decision of the court, M.M.M. Perfect Consulting LLC has been initially appointed the liquidator of the bank. The CBA revoked the license of Texnikabank OJSC Feb. 2.
This decision was made because the total capital of the bank didn’t correspond to the CBA minimum requirement of 50 million manats. The total capital adequacy ratio amounted to three percent [the CBA minimum requirement is 10 percent].
The bank couldn’t fulfill its obligations to creditors and didn’t manage its current activity prudentially.
Texnikabank has been operating in Azerbaijan since 1994 (previously – Rashadbank).
Thus, the ADIF will be carrying out liquidation process of two banks, since it already acts as liquidator of the Bank of Azerbaijan OJSC.