Azerbaijani giant bank negotiates with investors to draw foreign borrowings

Business Materials 4 July 2009 13:51 (UTC +04:00)

Azerbaijan, Baku, July 4 / Trend , I.Khalilova/

The International Bank of Azerbaijan (IBA) intends to continue drawing external borrowing in 2009, and recently has held a meeting in London with the world famous investors, IBA Deputy Chairman Vagif Akbarov said.

"Negotiations continue and of course, it is necessary to have better platform and base to draw loans for efficiency," Akbarov said.

The negotiations currently continue to attract a syndicated loan, he said.

So far, the IBA has already paid off around $1 billion of the drawn foreign borrowings. Earlier, IBA Chairman Jahangir Hajiyev said that they pay off borrowings without assistance of the government and Central Bank, which shows the stability of the bank.

"We both have attracted foreign loans without government guarantees, and paid off them via own reserves," Hajiyev said.

In July, it is expected to pay off over $100 million on the syndicated loan. The bank has debt only on the subordinated loan, granted for 8 years. Funds of the loan are in the bank's capital.

There is a problem of liquidity due to the global crisis on the international capital markets. Therefore, it is difficult to attract foreign borrowings, including by the banking sector of Azerbaijan.

Of the total amount of foreign borrowing, $2.5 billion falls to Azerbaijani banks and half - to the IBA.

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