International Bank of Azerbaijan leaving Russia, Georgia markets (UPDATE)

Business Materials 15 March 2018 18:13 (UTC +04:00)

Details added (first version posted on 17:45)

Baku, Azerbaijan, March 15

By Azad Hasanli - Trend:

The International Bank of Azerbaijan (IBA) is closing its subsidiaries in Russia and Georgia, IBA-Moscow and IBA-Georgia, the IBA said in a message March 15.

Business-Rabita, a communications company servicing activities of the IBA, will also be liquidated, the message said.

Abbas Ibrahimov, acting chairman of the IBA Board, commenting on this decision, noted that it was adopted March 14 at the shareholders’ meeting.

“Naturally, this decision is based on a detailed analysis,” he said. “We took into account the economic effectiveness of the above mentioned structures for the future activities of the bank and decided to stop their activities. This decision is related to the preparation of the IBA for privatization.”

The liquidation of these structures will be carried out in line with the legislation of the countries where they operate, he noted, adding that all liabilities to customers will be fulfilled.

The activities of other IBA subsidiaries, including the International Leasing Company and AzeriCard processing center, will continue, he said.

The IBA is at the stage of recovery since July 2015, which is related to preparations for privatization of the bank's state-owned shares.

To restore the bank's financial position, the distressed assets of the bank were transferred to state-owned Aqrarkredit non-bank credit organization. Aqrarkredit provides IBA with liquid assets in exchange for distressed assets.

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