A resolution on doubling of IBA capital to come out in 2007

Business Materials 29 June 2006 17:36 (UTC +04:00)

The International Bank of Azerbaijan (IBA) has publicized the plans on further capitalization of the bank. Jahangir Hajiyev, the chairman of the Board of Manager of the IBA, said the bank has a relevant understanding with the Ministry of Finances. In case of $1.35bn worth assets the current capitalization of the bank is low. If the founders of the bank take a resolution next year the IBAs capital might double next year. But we should complete the mission and after to consider this issue, Hajiyev underlined.

A resolution on the capitalization of the IBA was adopted in December 2005 and a result of placement of emission the statutory capital of the IBA will be increased from 100m old manats (20m AZN) to 200bn manats (40m AZN). The decree establishes a year for placement of issue. Now the emission is placed at 60-70 % and time has been left till December 2006, the IBA said.

Following a resolution on doubling the capital, the statutory capital of the IBA will be increased to 80m manats.

The Ministry of Finances welcomes increase of capital of the state-owned bank, as finally the public budget is in benefit from the privatization of state-owned packet (50.2%).