OREANDA-NEWS. September 19, 2008. Two commercial banks are collapsing in Azerbaijan.

The National Bank) of Azerbaijan (NBA) Deputy Chairman Rufat Aslanli said after the National Bank had withdrawn licenses from Poctbank and Atlantbank in July 2008, it took serious measures relating to them.

“The process of bankruptcy is started in Poctbank. Azerbaijan Economic Court decided a liquidator within the bankruptcy to inventory assets and liabilities under the special program,” R.Aslanli said.

Another bank – Atlantbank, which is being liquidated, has already paid all liabilities.

“The Bank had AZN 2.63 million of total liabilities. Until official liquidator created, the NBA temporarily administration group was in the Bank, that within three weeks paid 80% of the Bank’s liabilities. Today Atlantbank liabilities have been paid. Till the liquidation process finishes, the tax inspection has to conduct its work and then the Bank will complete its payments to the state and distribute remained assets between the shareholders,” R.Aslanli said.

According to the Law on Banks the period of two months is given for liquidation of the collapsed banks.

“It has passed more than 2 months but the process is still ongoing,” he stated.

Because of non-conformity to the NB minimum requirement for banks’ charter capital, violation of banking legislation, including failure to observe prudence norms of management and current transactions, since July 10 validity of license № 169 issued on December 4, 1993 to Atlantbank OJSC was suspended.

For breaches of banking legislation and inability to enable payments validity of license № 46 issued to Poctbank on December 3, 1992 was also stopped.

Following the NB’s decision quantity of operating banks in the country reduced to 44 credit institutions. Neither Atlantbank nor Poctbank played grave role in payment system of Azerbaijan.