Date of Irregular Meeting of Black Sea Trade & Development Bank’s Committee of Directors Defined

Business Materials 13 October 2007 13:54 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / Black Sea Trade & Development Bank's (BSTDB) suggestions to increase its capital will be released at an irregular meeting of the bank's Committee of Directors in Salonika on 29 October, Mikail Jabbarov, Azerbaijani Deputy Economic Development Minister and BSTDB's director from Azerbaijan, reported.

According to him, 30% (SDR 300mln) of the announced authorized capital of the bank which is SDR 1bln ($1.325bln) was paid so far. Azerbaijan's share is 2% (SDR 6mln), which was completely paid.

"Activities of the BSTDB exceed the forecasts. Bank's credit portfolio has made up some $600mln, so the capital of the bank should be increased," Jabbarov said.

Azerbaijani Government is also considering opportunities to purchase the free 3% stocks in the bank's capital, he said. As a result, Azerbaijan's share may increase to 5%.

A total of 3% of the bank's authorized capital is free, for 3 countries ( Armenia, Georgia, and Moldova) voluntarily cut their share by 50% (from 2% to 1%). So, other members of the bank have to purchase the free stocks.

BSTDB has been operating since 1 June 1999. Since its establishment the bank has financed 9 projects in Azerbaijan with a total cost of $32,073,700. Loans were allocated to the International Bank of Azerbaijan, Bank Respublika, Texnika Bank, Azerdemiryolbank, Kapital Bank, Unibank, and the Azerbaijan Micro Financing Bank.