IMF: Decision on privatization of Azerbaijan's largest bank to be made not earlier than 2012
Azerbaijan, Baku, Nov. 1 / Trend N.Ismayilova/
International Monetary Fund (IMF) welcomes the appointment of consultants to develop a strategy on privatization of the International Bank of Azerbaijan (IBA) and recommends to conduct the privatization process in accordance with a clear timetable, the head of IMF mission in the country, deputy director of the Middle East and Central Asia Department Nadeem Ilahi said at a press conference in Baku today.
From October 20 to November 2 in Baku is an IMF mission to meet with the Azerbaijani government consultations under Article IV of the Articles of Agreement "On creation of the IMF." Consultations are held annually on a regular basis.
"We believe that the privatization plan will be prepared by consultants by mid next year, and based on this, the Government will decide on the further privatization of the bank," said Ilahi.
According to him, today there are several options for recapitalizing the IBA.
"The Government has determined the solution of all issues regarding the privatization of the IBA not earlier than the summer of next year, when the consultants will prepare their strategy," said Ilahi.
The consortium PriceWaterhouseCoopers Audit Azerbaycan, Salans UK Limited, Rothschild & CIE is a consultant on the privatization of the Azerbaijani International Bank. It will prepare the initial proposals on this issue by late 2011. The consultants are expected to make proposals on the bank's capitalization. Afterwards, mutual discussions will be held.
IBA board chairman Jahangir Hajiyev told Trend earlier that the IBA will be privatized partially or fully through additional issue of shares, initial public offering or in other way.
IBA's main shareholder is the Azerbaijani government, which owns 50.2 percent of the shares; 49.8 percent of shares are owned by private physical and legal entities.