Azerbaijan, Baku/ Trend , corr. I. Khalilova/ The International Monetary Fund considers it necessary to develop Azerbaijan's financial sector. "We are expecting to complete the first step of the privatization of the State-Run "Kapital Bank", since it will allow us to increase the ability of the country's banking sector to compete," said the Chief of the IMF Baku Representative Office, Basil Zavoico.
In accordance with the Presidential Order on measures to be taken for privatization of "Kapital Bank" OJSC, which was issued on 9 February 2007, in the first stage, the state's capital in the bank will be reduced to 50%, expected to be sold out by five equal shares.
As a result of selling out, the capital of the Bank is expected to increase many times, and not twice, as was forecasted by the Supervisory Board of the State-Run Bank. Shares of the Bank will be sold on the appraised value, and the cost of rate is expected to be more than the balanced cost (AZN 12 million). The funds will be absorbed by the Bank, taking into account that these are free resources, and that these finances will be intended for the introduction of various high-quality banking productions and solutions. The funds gained from the privatization will not be sent to the State Budget, but intended for the development of the Bank itself, that will lead to the Bank's further extension.
The second stage of privatization, which consists of selling out the shares from the remaining state holdings, is likely to last for two or three years.