Azerbaijan, Baku, 12 November / corr Trend N.Ismayilova / "Depositors of Bank Melli Iran, holding assets in euro, suffered dramatically from fluctuations of euro rate over several months," Anar Ibrahimov, a deputy chairman of board of bank.
"Euro rate fluctuated in an unpredictable way over last two or three months. Clients, having assets in euro at that time, suffered dramatically, when they tried to get rid of European currency. And those, who did not react to drop of euro, did not lose much," Ibrahimov said.
The bank realized loaning and placing of funds in US dollars by mid-2006, then launched to
convert its assets in Azerbaijani manats. Presently, all operations are realized only in manats.
"We are obliged to place funds in foreign currency and we considered euro the only acceptable currency in order not to break currency position of Bank Melli Iran," Ibrahimov said.
It is impossible to allocate loans in euro, because the sources of population's income are in manats and dollars, and a circle of clients, which would prefer euro, is very small. It is unprofitable, because clients lose in the difference of rate, besides interest on loans.
Bank Melli Iran has only one branch in Baku, but the bank has a wide branch network worldwide.
On 1 November 2008, the bank's assets totaled AZN 18.51mln, authorized capital stock - AZN 10mln, joint capital - AZN 11.28mln, loaning portfolio - AZN 6.37mln, deposit portfolio - AZN 2.36mln. Profit of the bank made up AZN 1.15mln over 10 months.
Exchange rate of US dollar was AZN 0.8085 on 11 November.
The correspondent can be contacted at [email protected]