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IBA may be declared open for privatization in early 2018

Business Materials 19 September 2017 12:16
Ministry of Finance plans to start preparation of a strategy for privatization of the International Bank of Azerbaijan (IBA), Finance Minister Samir Sharifov has told reporters in Baku.
IBA may be declared open for privatization in early 2018

Baku, Azerbaijan, Sept. 19

By Anvar Mammadov – Trend:

Ministry of Finance plans to start preparation of a strategy for privatization of the International Bank of Azerbaijan (IBA), Finance Minister Samir Sharifov has told reporters in Baku.

Consultants with international reputation will be involved in this process, according to him.

“As you know, we have already completed restructuring the bank’s external liabilities. We think it is already possible to take pre-privatization steps.”

“This was also discussed at a meeting with President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti, and the EBRD expressed a desire to participate in IBA’s privatization,” Sharifov said.

He noted that the strategy for IBA’s privatization must be approved by the government.

“After approval, the bank will be declared open for privatization. This will probably happen in early 2018,” Sharifov added.

On July 15, 2015, President of Azerbaijan Ilham Aliyev signed a decree on rehabilitation measures related to preparations for privatizing the state-owned shares of the International Bank of Azerbaijan OJSC.

In order to restore the bank’s financial position, its distressed assets were transferred to Aqrarkredit CJSC, a state-owned non-bank credit organization. Aqrarkredit CJSC provides the IBA with liquid assets in exchange for distressed assets.

Restructuring of IBA’s foreign liabilities has been completed recently.

Azerbaijan has been a member of EBRD since 1992. Since then, the bank has invested about $2.8 billion in 161 projects in Azerbaijan’s financial, corporate, infrastructure and energy sectors.

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