Weak dependence on foreign borrowings helped foreign shareholder of Azerbaijani insurance company to escape crisis impact
Azerbaijan, Baku, June 30 / Trend , I. Khalilova/
The world financial crisis has not affected the activities of the foreign shareholder of a joint insurance company Basak Inam due to a weak dependence on external borrowings, Basak Inam Director General Orkhan Hasanov said.
Basak Inam was founded in 1996 with 49 percent share in the capital of Turkish Basak. Basak Inam is a joint insurance shareholder of which is the French Investment Corporation Groupama. It became a shareholder of the company in 2006 after it acquired 60-percent share in the capital of Turkish insurer Basak.
"Dependence of the parent company taking into funds attracted by all its subsidiaries from foreign loans amounted to about 12-13 per cent," Hasanov said.
"In this regard, the crisis has not strongly affected the activities of the company, although some our clients have already been closed and this fact will lead to certain problems."
He said Basak Inam is not dependent on external borrowing. Collection of insurance premiums is expected to exceed three million manats this year.
Nearly 3.2 million manats were collected in 2008 and 1.5 million manat in the first half of 2009.
On June 30, the official exchange rate is 0. 8041 manat to $1.
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