International Bank of Azerbaijan first time in its history makes deal with gold to attract funds
Azerbaijan, Baku, July 16 /Trend/
In the first half of the year, the International Bank of Azerbaijan (IBA) has managed to attract funds from foreign sources (banks and investment funds) in amount of about $250 million, the bank reported.
In February 2011, an agreement was signed with Deutsche Bank to attract funds in amount of $50 million for two years. The bank managed to attract more than $60 million only from a variety of foreign funds. Also more than $100 million was attracted from banks such as Societe Generale, VTB - France, Amsterdam Trade Bank, Demir Halk Bank.
Also for the first time in the history of Azerbaijan, it was managed to conclude a deal with the use of precious metal (gold) to attract funds in amount of more than $30 million through structured finance tools.
"Given the shortage of available funds on international financial markets, the IBA managed to attract most of the mentioned funds for more than one year, which along with other aspects, is irrefutable proof of a qualitatively new level of development of its international relations, the growth of confidence and high interest of the foreign investors in the Azerbaijani bank," the bank said.
At the same time, the IBA provides timely repayment of foreign loans made that is extremely important in modern conditions. In 2008-2009, the total amount of repayments totaled over $1 billion, in 2010 - $172.66 million and 31.5 million euros. Over six months of this year, the bank repaid foreign debts amounting to $302,265,369 and 27.5 million euros.
IBA today finances tens of projects aimed at ensuring the modernization of Azerbaijan's economy. These are projects in the field of innovation, industry, construction, electricity. In particular, the bank funded projects to develop wind energy in the country, create infrastructure for mobile communications, develop the metallurgical industry, agriculture and various industrial enterprises, and continues to work actively in this direction.
The International Bank of Azerbaijan was established in 1992 as the successor of the Azerbaijani branch of "Vnesheconombank". IBA holds a dominant position in the banking sector. The state share in authorized capital of the bank is 50.2 percent, the remaining share is distributed among private businesses and individuals.