Return period of overdue loans of International Bank of Azerbaijan can be extended
Baku, Azerbaijan, Oct. 9
By Azad Hasanli - Trend:
Aqrarkredit JSC can extend the return period of non-performing loans of the International Bank of Azerbaijan (IBA) transferred into its management, chairman of the AMFA, a board member of Agrarkredit NBCO Suleyman Kalashov told reporters Oct. 9.
"We have already started accepting distressed assets of the IBA, and this process takes place on a daily basis," he said.
Kalashov went on to add that Aqrarkredit carries out all necessary measures provided for by the decree of the head of state.
"There are two ways to return non-performing loans: legal and economic ones," he said. "We return the debts by economic means, while the interior ministry deals with legal measures, for example, in case of detection of misuse of credits or liquidation of the company to which the loan has been issued, and so on."
On July 15, 2015, President of Azerbaijan Ilham Aliyev has signed a decree on the measures for rehabilitation related to the preparations for privatizing the state-owned shares of the International Bank of Azerbaijan JSC.
The shortcomings in the management, investment and loan policy of the International Bank of Azerbaijan in recent years, as well as financing of less efficient, risky investment projects worsened the bank's financial state, caused increase in the share of distressed assets and reduced its liquidity, said the decree.
In order to overcome the current situation, restore the bank's financial position and ensure its sustainability, the bank's distressed assets are transferred to the state-owned Aqrarkredit CJSC non-banking credit organization, which has registered the issue prospectus of interest covered bonds of the Aqrarkredit CJSC non-bank credit organization totaling 3 billion manats.
Thus, these assets will be gradually eliminated from the balance sheet of the bank in exchange for liquidities.
Aqrarkredit CJSC is the largest non-bank credit organization, whose shares belong to the state, and it operates since 2001.
The International Bank of Azerbaijan was established in January 1992.
The bank's main shareholder is the Azerbaijani government, which holds 51.07 percent of shares, while private individuals and legal entities hold the remaining shares.
Edited by CN