Joining International Finance Corporation to Bank Respublika’s Capital to be Considered at Bank’s Shareholders Meeting
Azerbaijan, Baku / corr. Trend I.Khalilova / Akshin Amirov, the Director of the Department of Risk Management of Bank Respublika, has stated that during the meeting which is planned for the end of 2007, the issue regarding the International Finance Corporation (IFC) joining the shareholders of Azerbaijani Bank will be considered.
"Similar strategic issues will be resolved during the general meeting of bank shareholders," Amirov noted.
IFC is interested in acquiring 10% of Bank Respublika's capital shares. The issue of joining the finance corporation to the bank's capital through acquiring share holding of current shareholders share has not been agreed.
IFC's committee of directors made the decision to invest in Bank Respublika's capital by $4.5mln. In addition the corporation opened a credit line to the bank of $1.5mln on a 5-year term with an extended period of payment of the main debt within two years. Credit resources are considered for the development of small and average entrepreneurships in Azerbaijan.
Foreign participation in the Bank Respublika's capital has already taken place.
At present, 25% and one share of the bank belongs to the Sparkassen International Development Trust (SIDT, member of Sparkassen-Finanzgruppe) and Deutsche Entwicklungsgesellschaft (DEG, member of KfW banking group).