Time for Azerbaijan’s implementation of shareholder obligations at ECO Bank determined

Business Materials 24 February 2014 18:21 (UTC +04:00)

Baku, Azerbaijan, Feb.24

By - Ilaha Khalilova Trend:

Azerbaijan will pay the total amount for the ownership of 3 percent share in the Bank of Commerce and Development of the Organization for Economic Cooperation within five years, the country's government told Trend on Feb. 24.

" Azerbaijan paid some 1.95 million SDR (2,35 million manat) in late 2013 out of the total 9.75 million SDR (11, 73 million manat), and the remaining part will be divided into five parts," the source said.

Though, it has not completed payment of interest of the country in the authorized capital of the bank, Azerbaijan is a competent member of "ECO Bank".

The ECO Bank of the Organization for Economic Cooperation was created by Iran, Pakistan and Turkey in 2005. It possesses authorized capital of 300 million SDR ($465,2 million) and stated capital 1 billion SDR ( over $ 1,55 billion). The headquarter of the bank is in Istanbul.

In accordance with the document regulating the rule of admission of new bank members, the share of each should not exceed 15 percent and can not be less than 0.34 percent.

With inclusion of new members to bank shareholders, the authorized capital of the bank will rise from the existing 300 million ECO units (one ECO unit equals SDR unit) to 580 million ECO- units.
In this case, the three founders of the bank - Iran, Pakistan and Turkey will possess the same package of shares on 17.24 percent or 100 millions ECO-units for each in order to form majority of their total volume of shares.

In accordance with the Decree signed by the Azerbaijani President Ilham Aliyev at the beginning of Feb. 2014, on making appropriate additions to the Decree on the appointment of Azerbaijani representatives in international financial and credit organizations, a member of the ECO Bank Board of Governors appointed the Minister of Economy and Industry, and as an alternative member of the Board - Deputy Minister of Finance. Thus, Shahin Mustafayev become governor from Azerbaijan at the bank and Azer Bayramov become his deputy.

Economic Cooperation Organization (ECO) was established by Iran, Pakistan and Turkey in 1985. Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Uzbekistan, Tajikistan, Turkey and Turkmenistan are the member of the organization. The 9th summit of the organization was held in Baku on May, 2006.

The official exchange rate for Feb.24 is 0.7845 AZN / USD.

Translated by S.I.
Edited by C.N