EBRD freezes negotiations on purchase of equity participation in Azerbaijani bank
Azerbaijan, Baku, April 29 / Trend I.Khalilova /
Joining of the European Bank for Reconstruction and Development (EBRD) to the shareholders of Bank of Baku, by purchasing 25 percent stake is not a subject of debate today, Bank of Baku Chairman of Jalal Gasimov said. The initiative has been put forward since 2005.
"Today the issue is not subject for discussion, but I do not exclude this possibility in the future. It will depend on how much buying stakes in Bank of Baku will be of interest to the EBRD and correspondingly, our existing shareholders," Gasimov said.
Presently, other potential investors also do not show interest in joining the shareholders of Bank of Baku, apparently due to the effects of global crisis, as before there was observed high interest.
"All the negotiations were frozen with the onset of the crisis and they have not yet resumed,"he added.
Bank of Baku was established in 2005 as a result of merger of two local private banks - JSC "Bank of Baku" and CB "IlkBank". Currently the bank has five shareholders - three businesses and two individuals.
The commercial bank "Tugay passed the state registration Feb.14, 1994. Then, it was renamed to the Commercial Bank Feb. 10, 1997. The bank also changed its legal form of organization - Bank of Baku has passed re-registration as a joint stock commercial bank Aug.27, 1997 and received legal status of open joint stock company Oct.22, 2004.
The National Bank of Azerbaijan officially confirmed the merger of two banks Jan.26, 2005. JSC "Bank of Baku" received a license to conduct banking operations Feb.18, 2005.
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