ISSUE ON EBRDвЂ™S ENTRANCE TO CAPITAL OF BANK OF BAKU POSTPONED
The European Bank for Reconstruction and Development (EBRD) officially announced that the consideration of possible participation in the capital of Bank of Baku originally scheduled for 26 July to 6 September 2005, Trend reports.
The EBRD plans to become a shareholder of Bank of Baku, while the EBRD is currently a shareholder of one of the Azerbaijani bank - UniBank. Bank of Baku was founded in February 2005 through merger of business of two private banks - Bank of Baku and Ilkbank.
The EBRD plans to allot $5m with an expectation of increase of a potential of private sector financing, including the small and medium-scale entrepreneurship, will demonstrate the efficiency of the application of best methods for increase of positions in the market and support the consolidation of small local banks.
The EBRDвЂ™s investments envisage support to consolidation of bank and increase of their crediting potential, support to development of infrastructure and corporate governance, increase of the quality of administration and support to the institutional development of the Observation Board and demonstration of the priorities of the consolidation in the financial sector.
As earlier it was announced, the EBRD will purchase 25% in the statutory capital of Bank of Baku. The EBRD also announced on technical assistance by the European Union (EU) Tacis program, to be directed at the institutional development of Bank of Baku and assistance to the improvement of SME crediting.