TBC Credit Not Hurry in Its Transformation to a Bank
Azerbaijan, Baku, 10 July / corr Trend I.Khalilova / The non-bank credit organization TBC Credit (earlier named as SOA Credit) does not hurry up with changing the current status and its transformation to a bank, Ajdar Aliyev, the deputy chairman of TBC Credit, said. The strategy scheduled issue of a general license by the National Bank of Azerbaijan (NBA) in spring 2009.
"We are developing with the status of a non-bank credit organization and it fully satisfies us, Aliyev said. Though as a bank TBC Credit could have more opportunities to hold transactions, at present they are carried out through attracting long-term funds."
By the end of 2008 it is planned to attract some $30-40mln, though currently borrowing by TBC Credit amounts to $10mln. The loan portfolio reaches $17.5mln, including $2mln spent on consumer crediting and the rest divided equally between the portfolio on crediting small and medium scale business and mortgage.
TBC Credit also intensifies its activities in expanding its network of branches, which was sanctioned this year. In August the second branch of the bank will open in Baku, whist their number will be increased to 20 in the territory of Azerbaijan over the subsequent five years.
The intensification of TBC Credit's activities is explained with entrance of TBC Bank in the composition of shareholders through purchasing 75% of shares in the non-bank credit organization of former SOA Credit.
As a result of a deal the Georgian bank invested $7.5mln in the statutory capital of SOA Credit, increasing its authorized capital to $10mln.
Initially, the authorized capital of the credit organization is $2.5mln. The authorized capital of the organization formed by grants from the United States Agency on International (USAID), which was granted at the initial stage of the activities of Shore Overseas Azerbaijan, and accumulated as result of use of grant resources.
Prior to TBC Bank's entrance, the 100% founder of SOA Credit is the international consultative firm Shorebank International.
The assets of TBC Credit totaled $10.5mln as a result of 2007.
Major shareholders of TBC Bank are the International Finance Corporation (IFC, a member of the World Bank, German DEG and Georgian citizens.
On 10 July the official rate if US dollar was AZN 0.8085.
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