Smooth transition for capitalisation of one more Azerbaijani bank

Business Materials 12 December 2012 14:48 (UTC +04:00)

Azerbaijan, Baku, Dec. 12 / Trend A.Akhundov /

Azerbaijani AG Bank has almost brought its total capital to the level of the new regulatory requirement that will come into force in the country on January 1, 2014, chairman of the bank's board Azer Movsumov told Trend.

According to the CBA board's decision dated July 25, the minimum total capital of existing banks and authorised capital of newly established banks increased from the current 10 million manat ($12.7 million) to 50 million manat ($63.7 million). The new requirement for the capitalisation of the existing banks will come into force from January 1, 2014.

"Currently, the total capital of the bank stands at about 47 million manat and we will continue capitalisation next year," Movsumov said.

After the last issue of five million shares, the authorised capital of the bank was increased to 25 million manat.

AG Bank was founded in 1992. The bank's shareholders are the International Finance Corporation - 17.5 per cent and the Kazimir Partners company 10 per cent. The number of minority shareholders is 69 and their total share in the bank's capital is 31.81 per cent with two individuals owning 40.69 per cent of the equity.

The official exchange rate on December 12 is 0.7849AZN/USD.