New statement about return of deposits at bankrupt banks


October 21, Fineko/abc.az. The return of unprotected deposits in the amount not exceeding AZN 17,000 or $10,000 at bankrupt banks has started.

One of the questions addressed by us relates to how to calculate the amount of the returned deposit.

Head of the Center for Economic & Social Development and expert economist Vugar Bayramov informed portal ABC.AZ about that.

When asked whether AZN 17,000 relate only to the main amount of the deposit, or it is Bank’s total debt to the citizen, the expert replied that some citizens placed AZN 15,000 manats at the bank, and dividends of AZN 3,000 were accrued on their deposits, and the amount to be paid to the citizen make AZN 18,000.

Bayramov explains: "As the citizen did not take interests, Bank’s debt during the bankruptcy exceeded AZN 17,000, i.e. AZN 18,000. Since the rules related to the return of uninsured deposits the debt does not differ from the main sum and interests, the compensation is applied to Bank’s total debt to the citizen. That is, if the total deposit together with interests exceeds AZN 17,000, then compensation is not paid.

This means that an unprotected deposit of a person who has AZN 15,000 and accrued dividends in the amount of AZN 3,000, but does not take interests, is not returned. Taking into account that the balance of the amount is taken as a basis for giving compensation on loans, provided that the amount on unprotected deposits exceeds AZN 17,000, payment on the basis of the main amount may be more appropriate. In this case, citizens who should receive a total of more than AZN 17,000 with dividends will be able to receive compensation. For a person whose deposit amount is less than AZN 17,000, debt is taken as the main criterion.

In this regard, CESD suggests in cases when the amount of unprotected deposits exceeds AZN 17,000 or $10,000, to take into account not the total amount of Bank's debt to the citizen, but the total amount of the citizen's deposit. This means that citizens with a total amount of AZN 18,000, but with the main amount of AZN 15,000 it is also needed to return the unprotected deposit.

By Elmir Murad