Baku, Azerbaijan, June 8
By Anvar Mammadov – Trend:
Voluntary restructuring of external debt of the International Bank of Azerbaijan (IBA) is the most optimal way of resolving the issues related to the bank’s indebtedness to foreign creditors, Azerbaijani Deputy Economy Minister Sahil Babayev told the EU-Azerbaijan Business Forum in Baku.
Answering the question on why Azerbaijan, which has available foreign currency reserves and is able to fully repay the debts, decided to go for the IBA’s debt restructuring, Babayev noted that using the reserves is the last option the country can choose.
“As a result of restructuring the bank’s external debt, Azerbaijan will get advantageous conditions,” Babayev added.
Earlier, the IBA commenced a process of voluntary debt restructuring as part of its rehabilitation. The bank’s total debt to foreign creditors is $3.3 billion.
The International Bank of Azerbaijan has been operating since 1992 and is one of the country’s two state-owned banks.