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Azerbaijani banks sign protocol of intent on merging

Business Materials 16 February 2016 13:27 (UTC +04:00)
Gunay Bank OJSC refused to merge with Atrabank OJSC and Caucasus Development Bank OJSC, Emin Aghayev, chairman of the Gunay Bank’s management board, told Trend Feb. 16.
Azerbaijani banks sign protocol of intent on merging

Baku, Azerbaijan, Feb. 16

By Anvar Mammadov - Trend:

Gunay Bank OJSC refused to merge with Atrabank OJSC and Caucasus Development Bank OJSC, Emin Aghayev, chairman of the Gunay Bank's management board, told Trend Feb. 16.

Earlier, the three banks signed a protocol of intent in connection with asset merging.

"This is a quite complex and long process," said Aghayev. "As you know, the Central Bank of Azerbaijan (CBA) revoked the licenses of Atrabank and Caucasus Development Bank. This also delays the process."

Aghayev added that if the banks don't come to an agreement on merging, Gunay Bank will consider alternative consolidation options.

He said that earlier Gunay Bank had merger discussions with other banks, and now it is conferring with Atrabank and Caucasus Development Bank.

"If we fail to agree, we will negotiate with other banks," added Aghayev. "But I would like to say that Gunay Bank will surely remain in Azerbaijan's banking market."

Among the mentioned three banks, only Gunay Bank has a banking activity license. The other two banks' licenses were revoked on Jan. 27, 2016.

The CBA had said the two banks' licenses were revoked because their total capitals didn't correspond to the minimum requirement of 50 million manats.

The banks also couldn't fulfill obligations to creditors, CBA explained.

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