APA-Economics reports that the Chairman of Economic Policy, Industry and Entrepreneurship Committee Ziyad Samadzadeh gave information about the Law on Banks. According to him, if the amendments are adopted, voluntary restructuring procedure of banks’ liabilities will be applied in Azerbaijan. According to the draft law, the bank will be able to apply to court on voluntary restructuring of its liabilities. The application will be considered and a decision will be passed within ten days after the court received the appeal.
Moreover, bridge banks will be created in accordance with the draft law.
The document also envisages ways to compulsorily solve the problems of banks which are unable to be restructured voluntarily.
According to other amendments to the draft law, in case the administrators and shareholders bear responsibility for creation of problems in a bank, they will compensate the damage with their properties. In other words, properties of bankrupt banks’ shareholders and administrators will be confiscated.
The draft laws have been adopted by voting.