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Bank Melli Iran Baku branch announces amount of deposits in closed banks

07 March 2018 11:13 (UTC +04:00)

As of December 31, 2017 and December 31, 2016, balance cost of receivables of Bank Melli Iran Baku branch from other banks is equal to their fair value, APA-Economics reports quoting bank’s audit report.

According to the report, fair value of receivables from banks and other financial organizations as o December 31, 2017 made up AZN 2,476,426, while it was AZN 3,659,374 in 2016: ‘Bank did not place any deposit in 2017. In 2016 the bank placed deposit of AZN 500,000 at Mir Business Bank with annual interest rate of 1.0% for 6-month period. In 2017 the deposit at Mir Business Bank was completely repaid. In 2015 the bank placed two deposits of AZN 5,000,000 at Texnikabank OJSC with annual interest rate of 7.0% for 6-month period. Then, the period was extended for more six months. As of December 31, 2017 the rest of the amount of deposits placed at Texnikabank OJSC stood at AZN 6,067,778 (AZN 6,000,000 as basic amount, AZN 67,778 as interest). In 2015 the bank placed deposit of AZN 2,000,000 at Atrabank OJSC with annual interest rate of 6.0% for 6-month period. Then, the period was extended for more six months. As of December 31, 2017 the rest of the amount of deposits placed at Atrabank OJSC stood at AZN 2.009 million (AZN 2,000,000 as basic amount, AZN 9,000 as interest). As of December 31, 2017 rest of correspondent accounts at Texnikabank and Atrabank relevantly made up AZN 11,478 and AZN 2,119,051 (Texnikabank – USD431 and EUR 5,291 and Atrabank - USD513,261 and EUR 613,806). Licences of Texnikabank and Atrabank were revoked in 2016. Reserves on depreciation for money placed at these banks amount to AZN 8,517,907 (2016: AZN7,345,732). In 2015 the bank placed deposit of EUR 2,000,000 at Zaminbank OJSC with annual interest rate of 5.2% for 6-month period. Then, the period was extended for more six months. Zaminbank’s licence was revoked in 2016. Ledges of these deposits were real estate. In December 2017 the bank obtained a right to property on the pledge and transferred to its balance.’

Bank’s term deposits in Royal Bank as of December 31, 2017 made up AZN 3,998,288: ‘in compensation for deposits, Royal Bank provided a pledge with market value of AZN 4,300,000. The bank placed AZN 12,500,000 in Birlikbank OJSC which was closed in 2011. Birlikbank provided pledge for the bank. In 2016 the bank obtained right to property’.