Azerbaijani Government to Launch Denationalization of Staterun Package in IBA

Business Materials 13 December 2006 17:19 (UTC +04:00)

The privatization of half state-run International Bank of Azerbaijan (IBA) will begin in the first half of 2007, after the commencement of denationalization of Kapital Bank. The State Committee on Property Management informed Trend that at present work over the establishment of methods for privatization of IBA is in progress. A definite part of the Bank stock might be offered to a strategic investor.

Before the statutory capital of the IBA can be increased, the shareholders of the Bank have made a resolution to increase it from the current 40mln manats to 100mln manats.

The first phase of privatization of Kapital Bank will begin in December 2006 January 2007. In compliance with the presidential decree dated 1 March 2005, it is planned to double its statutory capital so that to decrease stare share in the bank by 50%. In this respect it is planned to issue a new emission of the Bank shares for 12mln manats. At present the statutory capital of the bank is 12mln and the aggregate capital is 24mln manats.

At present the interdepartmental commission is involved in the development of a schedule for privatization of both state-run banks.