Pakistan Bank’s Baku Branch to Launch Bank Crediting After Definition of Limits
Azerbaijan, Baku, 13 October / Trend corr. I.Khalilova /The Baku branch of the National Bank of Pakistan (NBP Bank) has completed the negotiations with five Azerbaijani banks on opening of loan lines, Sohail Ahmad, General Manager of the bank, said. Ahmad chose Kapital Bank, Azerdemiryolbank, Texnikabank, Rabitabank and AGBank for crediting.
"We informed the head office to receive limits to finance each bank," said the general manager.
Under the bank legislation, the limit must not exceed 25% of the borrowing bank's capital. Ahmad said that the response from NBP Bank's head office is expected by the end of the week.
The international loan rating and attraction of foreign borrowings to minimize risks were taken into consideration.
The branch of NBP Bank is ready to issue $1.5-2mln to each bank. The size of loans will depend on the limits for each bank.
Bank will credit at its own expenses. The head office, however, is also ready to issue recourses maximum to 6% per year in the state of emergency. NBP Baku branch is to credit Azerbaijani banks on the rates exceeding the rates of the National Bank of Azerbaijan (NBA), i.e. on 15-16% per year.
As a result of implementation of plans NBP Baku branch's portfolio has increased to AZN6-7mln. At present, bank's portfolio is AZN 250,000.
NBP opened its branch in Azerbaijan in July 2005.
National Bank of Pakistan was established in 1949. Bank is established with 75% participation of Pakistan. At present, NBP Bank has 17 foreign branches. Bank's assets are $12,408mln, $5,546mln portfolio and $9,636mln - deposit. Banks has invested some $3,431mln. NBP Bank has AAA loan rating with stable forecast.
On 13 October, the official currency rate is 0.8099 AZN/USD.
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