Turkish, Arab banks eager to finance Azerbaijan on Shariah principles
Azerbaijan, Baku, November 28 / Trend, I. Khalilova /
The International Bank of Azerbaijan (IBA) plans to borrow $10 million to $15 million as the Islamic financing from international capital markets before the end of 2012, Behnam Gurbanzadeh, head of the IBA Group responsible for Islamic banking launch, told Trend on Monday.
"As calculated preliminarily, if we begin to provide Islamic products and services under the existing legal provisions in the first quarter of 2012 we may borrow $10 million to $15 million from international markets before the end of the year," Gurbanzadeh reported.
The money can be borrowed from the Islamic Bank for Development (IBD), the Islamic Finance Corporation, and specialized agencies of giants such as Citibank, HSBC, and Deutsche Bank.
Turkey's Bank Asya, the Kuwaiti Turk Bank, and the Kuwaiti Finance House currently are very much interested in the Azerbaijani market, he noted.
"As the value of money at international financial markets is currently much lower than that in Azerbaijan, we can borrow money from there to further assign it here at lower interest rates. Generally speaking, the Islamic financing allows borrowing cheaper money for a longer period," Gurbanzadeh said.
He did not rule out the possibility of IBA cooperation with the Kuwaiti-Azerbaijani Investment Company (KAIC) established by the Azerbaijani Investment Company and Turcapital, daughter company of the Kuwaiti Finance House.