The next meeting of the shareholders of the Azerbaijan Microfinancing Bank (AMFB) is expected to be held in Baku on September 26, 2006. According to Andrew Paspilovsky, AMFB President, all the founders of Bank: the German Reconstruction bank (KfW), the Black Sea Bank Trade and Development Bank, the International Financial Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) , and the consulting company LfC will gather in Baku, Trend reports.
The issue on the increase of the authorized capital of AMFB will be the key topic of the forthcoming discussion. The changings in the team of the Bank`s shareholders will be considered during the meeting as well. At present, the founders of the Bank are defining more precise the new holding company which is expected to be a German one.
The introduction of the new company to the team of the shareholders of the bank to the moment of the increase in the Bank`s authorized capital depend both on the German legislation and Administration. This process must be accelerated, since the increase in the authorized capital of the bank is expected to take place till the end of this year.
Up to date the Bank`s authorized capital is $6.850 m. The share holding in the shareholders of AMFB is as follows: KfW 24.96 per cent ($1.710 m.), LfC 5.7 per cent ($390.000), the Black Sea Trade and Development Bank, and IFC both 25.55 per cent ($1.50 m.), and EBRD 19.24 per cent ($1.250 m.). The authorized capital of the Bank is expected to increase at least up to $10 m. It is not excluded that the this figure will be exceeded, since according to the normative requirement of the National Bank of Azerbaijan, up to July 1, 2997, the authorized capital of each bank operating in the country must be at least $10 m. According to Mr. Paspilovsky, the increase in the authorized capital of the bank will happen till the end of this year.
The shareholders of the bank will get acquainted with the results of the activity of AMFB over the past period of 2006. To September 1, 2006, the credit portfolio of the Bank made up $32 m. on its 10.000 credits versus 417 m. versus the end of the last year. According to the President of the Bank, despite of the expectations, August 2006 was the record month, since only in this month; 47 m. were placed, with 2.000 credits. 1.000 persons out of this number brought means from AMFB for their business for the first time.
The Bank`s assets to September 1, 2006 increase on 100 per cent, and made up $42. AMFB is a bank of the closed type. It began its activity on October 29, 2002.