Details added (first version posted on 10:08)
Baku, Azerbaijan, Jan. 23
By Anvar Mammadov – Trend:
The International Bank of Azerbaijan (IBA) has appealed to the Nasimi Court of Baku to extend the term of restructuring of liabilities to foreign creditors.
The bank requested for an additional period of 180 days.
Previously, the restructuring of liabilities was scheduled to be completed on Jan. 30, 2018. If the court makes a positive decision, the restructuring process of IBA’s obligations will be extended until the end of July 2018.
The International Bank of Azerbaijan is at the stage of recovery since July 2015, which is related to the preparation for the privatization of the bank’s state-owned shares.
In July 2017, creditors of the IBA adopted a plan of voluntary restructuring of the bank’s foreign liabilities.
As a result of the restructuring, the bank exchanged foreign currency liabilities of about $3.34 billion for new bonds of the bank and the state. Also, all interest on senior and subordinated liabilities that falls due before September 1, 2017 were paid to claimants in cash on the relevant distribution date.
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.
The International Bank of Azerbaijan has been operating since 1992. More than 90 percent of the bank’s shares belong to the Azerbaijani state.