Baku, Azerbaijan, Aug 16
By Anvar Mammadov - Trend:
The European Bank for Reconstruction and Development (EBRD) is still ready to consider the possibility of its participation in the process of privatization of the International Bank of Azerbaijan (IBA), the Bank's head office told Trend.
The source told Trend that, the EBRD is currently waiting for the launch of this process.
"The EBRD will consider this possibility after the privatization process is properly launched. We have extensive experience with similar privatization projects in the region. But it should be noted that strengthening the corporate governance of IBA is an important element. This step should be taken before we consider our potential participation in the privatization of the bank," the source said.
The International Bank of Azerbaijan, founded in 1992, is at the stage of recovery since July 2015, which is associated with the preparation for the privatization of state-owned shares of the bank. To restore the bank's financial position, its distressed assets were transferred to the non-bank credit institution Aqrarkredit.
In exchange for distressed assets, the NBCO provides the IBA with liquid funds. At the same time, the restructuring of IBA's foreign obligations has recently been completed. Over 95 percent of the Bank's shares are owned by the government.
Azerbaijan has been cooperating with the EBRD since 1992. Since then, the bank has invested more than $3 billion in 165 projects in the financial, corporate, infrastructure and energy sectors of Azerbaijan
Meanwhile, 26 percent of investments fall on the private sector.
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