Azerbaijan, Baku, 13 March / Trend corr. IKhalilova / The Azerbaijani Government is to resolve the privatization of the International Bank of Azerbaijan (IBA), which maintains the leading position in the banking market in the country, in the medium term prospect, Valeria Fikera, International Monitory Fund (IMF) Mission head, stated in Baku on 12 March.
"I think we should privatize IBA once Kapital Bank has been privatized," Fikera said. The Government is planning to privatize the bank in the second quarter of 2008.
The Government share in IBA comprises 50.2% and the balance is formed at the expense of private shareholders.
IBA Commission on Privatization is developing the requirement of an international consultant who will implement the project on privatization of the bank within top auditory companies. The chosen consultant will propose IBA shares to relevant investors.
By the President decree from 1 March 2005, the sale of the IBA package may be implemented in installments. Privatization methods of the State bank will be specified in the new decree.
An auction has been announced for the sale of the remaining 50% of Kapital Bank to staff, individuals and juridical entities.
Samir Sharifov, Azerbaijani Finance Minister, stated about AZN 30mln can be transferred to the State Budget from complete privatization of Kapital Bank Some AZN 12mln was transferred from sale of 50% of the Kapital Bank share. The Bank's authorized capital reached AZN 24mln.
The decision on the complete privatization of Kapital Bank was made by the order of the Azerbaijani President from 19 October 2007. In 2007, 50% of the State share of the bank became private property. AtaHolding with 20% of shares, Xalq Bank 20% and Azersun Holding with 10% became the new shareholders of the bank.
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