Temporary Administration at Georgian Branch of Bankrupt Azerbaijani Bank

The National Bank of Georgia (NBG) is appointing a temporary administration at Caucasus Development Bank – Georgia following the bankruptcy of its headquarters in Azerbaijan.

The Caucasus Development Bank started operating in 1999, and was launched in Tbilisi, Georgia, in 2013.

NBG say the sending of a Georgian expert to oversee Azeri operations is standard course for easing any existing challenges and is no cause for alarm: “The Caucasus Development Bank – Georgia, with assets amounting to 0.14 percent of the total banking assets of Georgia, continues to serve its clients,” the NBG said. “The capital and liquidity levels of the bank are sufficiently high that the temporary administration will be fully able to meet the requirements of creditors, including depositors,” NBG representatives said, adding that they are confident in the health of the Georgian banking sector, which is “regulated in compliance with the best international practice… all decisions of the NBG aim at the sustainable and stable development of the banking sector.”

This week two Azerbaijani banks, the Caucasus Development Bank and AtraBank, were declared bankrupt on a decision by Baku Administrative-Economical Court No 1. following the revocation of the licenses of both banks by the Central Bank of Azerbaijan (CBA) this January.

Katie Ruth Davies