BAKU: Nakhchivan Bank has no financial problems, Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend reports.
He made the remark during the press conference on changes in the parameters of the discount rate.
He mentioned that this bank had sold a portion of its loan portfolio to Kapital Bank.
“The bank’s stockholders made this decision. Even now, shareholders will debate and vote on specific concerns. However, there is no concern with the financial strength,” he emphasized.
The Chairman also asserted that the Deposit Insurance Fund (the liquidator of banks) does not treat depositors of liquidated banks unfairly.
“We have received many appeals from depositors claiming that their deposits are not returned. However, after investigation, we have established that the liquidator is acting in accordance with the law and that the claims of the applicants are unfounded. Throughout my tenure as Chairman of the Central Bank, I have not come across a case where a depositor’s deposit was not re
turned. The liquidation process is primarily under the control of the CBA,” he said.
Kazimov added that the CBA intends to encourage the placement of deposits for a long period of time.
“According to the data for the first of January this year, 82-83 percent of the population’s savings are placed in Azerbaijani banks for one year. 72-75 percent of depositors place deposits up to 30,000 manat ($17,636). To stimulate the population’s long-term savings, the Central Bank proposed to tax citizens’ income from deposits (at a rate of 10 percent) and exempt from tax deposits placed for a minimum term of 18 months,” he added.
To note, the CBA lowered the discount rate from 7.5 percent to 7.25 percent on May 1. The upper limit of the interest rate corridor was reduced from 8.5 percent to 8.25 percent, while the lower limit was kept unchanged at 6.25 percent.
Nakhchivan Bank (“Nakhchivanbank” JSC) was founded in 2008 to provide financial services to the population of the Nakhchivan Autonomous Republic as well as tho
se working in small and medium-scale entrepreneurship. It is Azerbaijan’s second regional bank.
Source: Trend News Agency