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Largest Azerbaijani bank completes capitalization

Business Materials 4 July 2009 14:32 (UTC +04:00)

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

Shareholders of the International Bank of Azerbaijan (IBA) completed the payment of bonds to bring the bank's authorized capital up to 200 million manat, said deputy chairman of IBA board Vagif Akbarov.

"The main shareholder of the bank - the Ministry of Finance - has completed the formation of its 50.2 percent share in the capital of IBA during one and a half months," said Akbarov.

He said that the bank will continue its capitalization in future as well, but the decision to further increase the authorized capital has not yet been made.

The chairman of the IBA board Jahangir Hajiyev said formerly that the Central Bank of Azerbaijan recommended IBA to increase authorized capital to one billion manat.

"The possibility of the capitalization of the bank up to this level depends on the shareholders, depending on the decisions that will made in a time frame," said Hajiyev.

According to him, the decision of the government to remove taxation of revenue from 2009 will allow IBA to be additionally capitalized at 10 million manat annually. In the first quarter of 2009, net incomes of IBA amounted to 30.426 million manat, increasing 62.4 percent compared to the same period of last year.

MBA's assets hit 3,308.8 million manat in the first quarter, which is 14.5 percent more than in the same period of 2008. The aggregate capital of IBA is formed at the level of 391.2 million manat, in which the authorized capital accounts for 193.8 million manat.

Official rate on July 4 is 0.8042 AZN/USD.

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