Foreign bank office closed in Azerbaijan

Business Materials 14 November 2013 15:05 (UTC +04:00)

Baku, Azerbaijan, Nov. 14

By Ilaha Khalilova - Trend: Trading at the office of the Latvian Parex Bankа has been suspended in Azerbaijan. The closure of the bank's office is related to the request of the Latvian bank, the Azerbaijani Central Bank told Trend on Nov.12.

As a result of Parex Banka's leaving Azerbaijan's bank market, the total number of foreign banks' offices in the country was reduced to four.

Earlier, the closure of the Parex Banka office in the country was expected after the registration of the Citadele banka's office. The necessity for this was caused by structural changes in the Latvian bank which was divided into two banks - Parex Banka and Citadele banka in 2010.

The bank's division took place on the following principle: the good assets were transferred to Citadele banka, and non-business assets remained in the 'old' bank. That enabled the new bank to operate stably, with profit and it will draw a line under the results of the crisis.
Parex banka was to maintain its position in Azerbaijan by removing it to Citadele banka. Earlier it was supposed to rename the current office of Parex banka in Azerbaijan and in this connection, Citadele formalised the necessary documents for the transfer of legal continuity.

Despite the closure of the Latvian bank office in Baku, Citadele Bank continues to cooperate with Azerbaijani banks. It conducted a number of large transactions for Azerbaijani companies in recent years and organised the placement of bonds and issuance of syndicated loans. Earlier, chairman of the bank's board Juris Jākobsons said that Citadele is also interested in serving the interests of Azerbaijani banks in Europe, managing their investment portfolios and sharing experiences in the implementation of modern integrated technology, as well as conducting staff training.

In 2010, the bank sold leasing company Parex Leasing & Factoring that had been operating in Azerbaijan since March 2005 and which remained within Parex banka. The bank was freed from similar assets in Russia, Ukraine and Belarus.

Citadele banka JSC is a credit institution established within the plan for reconstruction of Parex banka JSC. Its founder is Privatizācijas aģentūra.

Parex banka was founded in 1992. Representative offices, branches and subsidiaries of the bank are located in 12 countries worldwide. Its branches operate in Berlin, Stockholm and Tallinn. .