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EBRD resumes talks with Azerbaijani regional bank

Business Materials 2 February 2009 17:55 (UTC +04:00)

Azerbaijan, Baku, Feb. 2 / Trend , I.Khalilova/

The European Bank for Reconstruction and Development (EBRD) has resumed assessment of its opportunities to become a shareholder of Ganja Bank, a regional bank in Azerbaijan, Ganja Bank Chairman of the Board of Fuad Musayev said on Feb. 2.  

"The process has been suspended because of the global financial crisis. As the influence of the crisis is rising in Europe, I think assessment and making a decision will be delayed," said Musayev.

"EBRD is interested in Ganja Bank, as it has requested Azerbaijani bank's annual account," he said.

Earlier Ganja Bank shareholders decided to sell a 20-percent share to the EBRD. The share may be increased to 25 percent.

Musayev is confident that this transaction will take place, as EBRD is interested in developing regions of the country. Ganja Bank is today the first regional bank (it was the only regional bank until Nahchivanbank was opened last year). As part of the state program on socio-economic development of regions, the Government attaches great importance to development of entrepreneurship in the regions, including banks.

If EBRD agrees to purchase the share, new shares will be issued. The authorized capital of Ganja Bank is 10 million manat. In near future it will be increased to 15 million manat. The aggregate capital of the bank tops 12 million manat.

According to Musayev, cooperation with EBRD starts with lending. Therefore, the goal to become familiar with the 2008 financial performance of Ganja Bank amid crises is to provide financial support through loans.

Ganja Bank with two shareholders has been operating since 1994.

On Feb. 2, the official exchange rate is 0.8073 manat to $1.

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