Bank TuranAlem (BTA) of Kazakhstan is ready to acquire a stake in one of the Azerbaijani banks in 2005. Erkin Tatishev, the deputy chairman of the Board of Director of the BTA. According to Tatishev, the issue will depend on support of the National Bank of Azerbaijan (NBA).
"During the talks the Azerbaijani government and NBA stated their readiness for assisting in attraction of foreign investments for the development of the banking system. BTA is ready to develop the cooperation with local banks and open its joint bank here,” Tatishev underlined.
BTA 2010 plans cover the territory of CIS with a unified network of daughter banks. At present the bank has 7 daughter banks and they will be shortly opened on Kyrgyzstan, Uzbekistan and Caucasus.
"BTA is ready to set up entrance to the Azerbaijani capital with a small packet and increase it to up to control packet. We don’t want to be a portfolio investor and regard ourselves as a strategic investor," Tatishev noted.
In its initial plans on acquisition of the Azerbaijani bank BTA set a term on developed branch network and market stake for 5%.
"Representative office and daughter bank will resolve different tasks. After the deal on the acquisition of a stake in a local bank the Baku office of the BTA will function under its authorities," Konstantin Kolpakov, the deputy chairman of the Board of Directors of the BTA, said.
"Baku Office of the bank will be involved in developing services on trade financing and syndication, interbank crediting. The daughter bank will develop a credit portfolio, financing of small and medium-scale entrepreneurship and retail operations,” Tatishev underlined.
At present assets of the BTA comprise $5.5bn, while aggravate capital is $600m. It market share in Kazakhstan is 25%, while by the end of the year it might attain 30%. Shareholders of BTA , founded in 1925, are the European Bank for Reconstruction and Development (EBRD), RZB, FMO, and the International Finance Corporation (IFC).