IFC stops talks on purchase of Azerbaijani banks' stakes
Azerbaijan, Baku, Sept. 25 / Trend , N.Ismayilova/
The Azerbaijani Rabitabank and the International Finance Corporation (IFC) have suspended negotiations to buy 20 percent of stakes in the authorized capital of the bank, said Elchin Gadimov, the deputy chairman of Rabitabank.
"These negotiations were launched early last year, due to the global financial crisis, IFC cancelled them because the world financial institutions now are more focused on risk management and look forward to stabilize the markets," said Gadimov.
He said the project is temporarily postponed, but the partnership between the bank and corporation remained.
"The deal is postponed until the period, while IFC will switch to a more active phase of their work," he said.
Previously, IFC has stated his intentions to complete negotiations for the acquisition of a 20-percent stake in the authorized capital by the end of 2008.
The agreement, signed in March 2007 between Rabitabank and IFC, envisages allocating a loan to support small- and medium-sized enterprises in Azerbaijan and acquiring 10-20 percent of stakes in the bank. Loan for Rabitabank has been allocated in the amount of $2 million and had to be converted into shares of the bank.
Along with the credit, IFC provides technical support to the bank. Consultancy services are rendered to the bank by international experts, having an experience in the world's giant financial institutions, in the direction of risk management, strategic planning and management information systems.