From August 1, 2012, Azerbaijan Deposits Insurance Fund will start to reimburse the deposits in Royal Bank, of which licence was abolished, said the Executive Director Azad Javadov.

According to him, the agent banks are Mugan Bank, AGBank and Bank Respublika. 

The reimbursement process will be conducted by distributing on zones. So, the depositor will get information about agent bank and its branch by applying to Royal Bank’s relevant branch. Thereafter, the depositor will get compensation by applying to branch of the bank. Mugan Bank’s 14 branches will participate on Royal Bank’s 17 branches, Bank Respublika’s 10 branches on 13 branches and AGBank’s 3 branches on 3 branches during the reimbursement. 

Javadov noted that, total deposits to be repaid was AZN 17.3 mln, number of depositors who’s deposits are protected was 6,422. Bank’s total liabilities on deposits are AZN 58 mln but protected deposits are AZN 17 mln (29%).Remind that, annual YTM protected by Fund must not be over 12%. Maximum sum of compensation is AZN 30,000. 

Note that, approximately AZN 8 mln of compensation will be repaid by Mugan Bank, AZN 6.5 mln – by AGBank and AZN 2.8 mln – by Bank Respublika. 

Javadov also noted that, reimbursement process would be completed in 14 days.

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