Azerbaijan, Baku, Dec. 25 / Trend , N.Ismayilova/ National Bank of Azerbaijan (NBA) cancelled licenses of three non-bank credit organizations - Gaygi Credit Union LLC, Turan and Balakan, the Bank said on Dec. 25.
The reason to cancel the license of the Gaygi Credit Union, which was established in Imishli with a license issued on Oct. 31, 2003, is groundless non-submission of reports for two accounted period to NBA, as well as absence of annual audit.
Licenses of the credit unions Turan (established in Shamkir region), issued on Feb. 15, 2005, and Balakan (Balakan region), issued on Oct. 31, 2003, were cancelled due to recurrent violation of economic regulation standards, despite numerous warnings by NBA.
All three credit unions were charged to establish liquidation commissions and to carry out the necessary elimination work. As of Oct. 1, 97 non-bank credit organizations, including 78 credit unions, operated in Azerbaijan, NBA said. According to the Law on Credit Unions, a non-bank credit union shall be composed of 11 people and carry out lending operations by funding its own members. Non-bank credit union, like banks, shall quarterly report to the National Bank. The law does not allow credit unions to accept deposits from the public. In late 2003, five credit unions and several individuals decided to establish the Association of Credit Unions of Azerbaijan (AKIA). Later, they had been joined by the majority of credit unions operating in Azerbaijan. Currently, the Association unites 51 credit unions.
Have any feedback? Contact our journalist at [email protected]