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IFC Suspends Negotiations on Joining to Azerbaijani Bank’s Shareholders

Business Materials 5 September 2008 18:08 (UTC +04:00)

Azerbaijan, Baku, 5 September / Trend corr. I.Khalilova / "The International Financial Cooperation (IFC) does not examine issue on its joining the composition of Bank Respublika's shareholders," Aliya Azimova, the IFC representative in Azerbaijan said. Earlier, the IFC stated its intention to purchase 10%-stake in the capital of Bank Respublika. This issue was repeatedly submitted to shareholders of the bank for discussion. Perhaps, negotiations with the IFC were suspended because of their refusal.

"We are not negotiating to purchase shares of the bank, because our shareholders do not want to change the current structure," Aslan Abbasov, the Bank Respublika vice president said.

Meanwhile, the IFC's Board of directors has made a decision to invest $4.5mln in capital of Bank Respublika.

There is a foreign capital in the composition of the bank's shareholders. Particularly, 25 and one share belong to Sparkassen International Development Trust (SIDT, member of Sparkassen-Finanzgruppe) and Deutsche Entwicklungsgesellschaft (DEG, member of KfW banking group).

At present, stock capital of Bank Respublika, after its recent increase by AZN 10mln in August 2008, was formed at AZN 22.5mln level and aggregate capital exceeded AZN 43mln.

"Next rise is not expected by the end of 2008, Abasov said. We have enough capital in order to work without increase."

The exchange rate for US dollar is AZN 0.8154 on 5 September.

The correspondent can be contacted at [email protected]

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