EBRD (European Bank for Reconstruction and Development) fully supports the National Bank of Azerbaijan (NBA) in its plans to increase the authorized capitals of the banks operating in Azerbaijan. And we are ready to support the consolidation of the banking sector of Azerbaijan. It would be better if Azerbaijan had few large banks than many small ones, Raymond Convey, Head of EBRD Local Representative Office Baku told Trend today.
According to Mr. Convey, at present, EBRD is preparing to sign credit agreements with several Azerbaijani banks on opening credit lines. As it to the possible acquiring of the share holding in the banks` capital, the Bank has not work in this direction yet.
According to him, Azerbaijan`s banks are too small, therefore the volumes of the credit lines are not so large. That is why, when we mention Azerbaijan`s banking sector, we do not speak about large sums. EBRD`s credit resources will be sent to financing of small-scale, small and medium business, told the Head of the Bank`s Local Representative Office.
At present, EBRD negotiates with its existing bank-partners on increasing of their credit lines, as well as new other banks EBRD intends to involve to its programs.
EBRD has announced about the expanding in its operations in Azerbaijan`s financing sector. On the whole, it was pointed out during the visit of EBRD President Jean Limier to Azerbaijan that in 2006 calendar year, EBRD can double its obligations before Azerbaijan`s banking sector. EBRD has invested more than в'¬40 m. to the local banks. Since 1997, EBRD has discussed perspectives on acquiring of 20 percent of the share holding in the capital of the International Bank of Azerbaijan (IBA). In 2004, the Bank even signed a protocol on intensions with Azerbaijan`s Economic Development Ministry, but in March 1, 2005, the scheme of the privatization of the State Bank was changed.
At present, EBRD participates in the capital such Azerbaijani banks like AzerDemirYolBank, Azerbaijan Microfinancing Bank, UNIBank, and has made a decision to acquire a share holding in Bank of Baku,, but the deal has not been concluded yet.
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