Central Bank approves Turkish bank’s intentions on bank purchase in Azerbaijan

Business Materials 8 October 2012 20:48 (UTC +04:00)

Azerbaijan, Baku, Oct. 8 /Trend A.Akhundov/

Azerbaijani Central Bank approves plans of Turkish Ish Bankasi to purchase a bank in the country. This was reported to Trend by general director of the Central Bank Rashad Orujev.

"We know that Ish Bankasi is planning to enter our market. The system is open for foreign capital, there are no limitations. We would like to see famous bank brands in our market and will welcome this process. We will be waiting for negotiation results of Ish Bankasi with local banks.

If they reach an agreement, they will approach Central Bank for respective permission. The process is going to be nonproblematic" Orujev added.

Explaining the reasons for difficulties faced by Turkish bank during its attempts to open a branch in Azerbaijan, Orujev said that Central Bank's position to present opportunities for foreign investors to consider the acting banks and their purchase, not to increase the number of banks in the country.

"This is a normal and correct position of Central Bank. This position is not directed to prevent foreign banks from entering the market," he added.

According to reports of Turkish mass media, Ish Bankasi is going to purchase a bank in Azerbaijan, as the Central Bank has refused him a permit for establishment of a branch.

According to information, Ish Bankasi is currently leading negotiations with 3 Azerbaijani banks, agreement has almost been reached with one of them. The parties are currently discussing the price of purchase.

Ish Bankasi owns 891 structure departments in Turkey and 11 abroad, as well as a branch in Germany and a mission in China.

Some 43 banks are currently operating in Azerbaijan, 23 of them with foreign capital, The share of foreign capital is formed within 50 to 100 percent in 7 of them, 50 percent - in 14 banks, there are 2 local branches and 5 missions of foreign banks.