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Worldwide Crisis Affects U.S. Entering in Azerbaijan’s Bank Market

Business Materials 3 November 2008 13:33 (UTC +04:00)

Azerbaijan, Baku, 3 November / Trend , corr. I.Khalilova / Transformation of the American Citibank representative into daughter bank in Azerbaijan remains valid, but in the context of the worldwide financial crisis, the bank is considered one of the most global player, Rufat Aslanli, the Deputy Chairman of the National Bank of Azerbaijan (NBA) Board, said.

"This is a matter of time, but it is still relevant. However, nobody can say exactly when the converting process to begin in banking business in Azerbaijan," Aslanli said.

The financial sources of the country have revealed that Citibank had already been working on buying shares in the Azerbaijani bank.

At present, the representation of the American Citibank has been operating in Azerbaijan, which was opened through the Turkish joint stock company Citibank in May 2008.

Citibank applied to the NBA in November 2007, and the board of National Bank approved the opening of bank office in Azerbaijan on 18 February 2008.

Even when Citibank announced broad plans in the country, it indicated a willingness to carry out banking transactions through the conversion of office to branch

Currently, there are representatives of two banks in the country - the Latvian Parex Bank and the German Commerz Bank. The German bank granted the permission in November 2007

The interest of foreign banks to enter the financial market of Azerbaijan is great. The French Societe General bank, Russian VneshtorgBank [he has already applied to NBA for permission to buy a controlling stake in AF Bank], Georgian TBC Bank has already committed a deal to acquire 75% shares in non-bank credit organization SOA Credit (now TBC Credit) already expressed desire to acquire participation in local banks.

There are 46 banks, 24 of which have a participation of foreign capital in Azerbaijan.

The correspondent can be contacted at: [email protected]

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