Azerbaijan'sFinancial Market Supervisory Body placed Bank Standard CJSC under provisional administration forthree months, the Trend news agency reported, citing the head of the regulator.
RufatAslanli reportedly said the lender's liquidity and capital position recentlydeteriorated because of worsening asset quality, while its shareholders andmanagement did not have sufficient resources to solve the problems. GivenStandard Bank's systemic importance, a financial rehabilitation program will belaunched with the aim to fully restore its liquidity and ensure its long-termsustainability.
TheAzerbaijan central bank has provided a six-month loan of 15 million Azerbaijanimanats to allow the bank to fulfill its current liabilities. Inaddition, a one-month moratorium was placed on the repayment while an estimateis carried out of the overall level of state support required, Aslanli said,adding that the government will take all necessary measures to restore thebank's financial stability.
StandardBank is Azerbaijan's third-largest lender in terms of household deposits, Trendnoted.
As of May 2, US$1 wasequivalent to 1.51 Azerbaijani manats.