On 10 November 2006 the International Bank of Azerbaijan (IBA) signed a credit agreement in Baku with a syndicate of 26 foreign banks from 12 world countries in the amount of $130 mln at LIBOR + 0.9% for 1 year, Trend reports. The fund will be mainly directed at strategic infrastructure projects.
Organizers of the financing are City Group, JP Morgan, the Austrian RZE and the German Commers Bank, which allocated $9 mln each. The balance of the loan was allocated by 22 other banks.
Initially talks were held on the approval of a $60 mln credit but the successful development of the banking sector in Azerbaijan enabled the syndicate to take a resolution to double its credit and allocate it at low interest rates, Ahmet Bekte, head of the Credit Department of City bank, stated in Baku on Friday.
We are witnessing a positive development of the Azerbaijani economy and successful integration into the international community. The efficient development of the IBA has enabled us to increase the amount of the credit, he stressed.
Asgar Mammadov, the Deputy Chairman of the Managing Board of the IBA, stated that in the current stage of development there is a need to attract large loans. The IBA will direct the credit on strategic infrastructure projects.
At present the total credit portfolio of the IBA is AZN 850 ml.