Shareholders of Azeri Micro Finance Bank resolve to direct dividends on further recapitalization of bank

Business Materials 14 February 2006 19:12 (UTC +04:00)

The founders of the Azerbaijani Micro-Finance Bank (AMFB) estimated its activities in 2005 as successful and decided to leave the dividends for investing in the banks capital, Thomas Engelhardt, the chairman of the Board of the AMFB, told Trend. The shareholders of the bank - KFW, the European Bank for Reconstruction and Development (EBRD), the Black Sea Bank for Trade and Development and consulting company LfC, assembled in Baku to consider the results of last year, business schedule for 2006, opportunities for increase of the statutory capital, and the expansion of the branches.

They approved increase of statutory capital by late 2006, whereas the final resolution will be adopted in the second quarter (by summer). Engelhardt said that the statutory capital will be increased as minimum to $10m, but also to exceed the sum. At present the issue on payment of stakes by shareholder in the statutory capital is under consideration, while the correlation in the participation share is also expected to change.

Today the statutory capital of the bank is $6.85m. The participation share of all shareholders at the AMFB is as follows: KFW possesses 24.96% ($1.71m), LfC company 5.7% ($390,000), the Black Sea Bank for Trade and Development and the International Finance Corporation 25.55% ($1.75m each), while the EBRD 19.24% ($1.25m).

The shareholders confirmed the opening of two branches in Baku and Lenkoran this year in compliance with the business schedule, Engelhardt said. So, the branches of AMFB will be increased from the exiting 6 to 8.