Expansion of Azerbaijan’s Stock Package at BBTD Not Included in Agenda of Meeting of Board of Directors

Business Materials 21 August 2007 19:32 (UTC +04:00)

Azerbaijan, Baku / corr Trend I.Khalilova / The Board of Directors of the Black Sea Bank of Trade and Development (BBTD) plan to assemble at the 56th meeting in Salonniki in October 2007, the Ministry of Economic Development announced.

"The date and agenda of the meeting are still to be determined," the ministry said.

Azerbaijan has voiced its will to increase its stock at the BBTD through vacant 3%-stake at the Bank, that the bank approved. The Ministry of Economic Development has confirmed that at present the issue is being considered at the government, though yet it is questionable whether the issue will be discussed at the BBTD Board of Directors. Azerbaijan is currently subscribed to 2% of BBTD's stock and the country's share in the bank is SDR 6mln.

Azerbaijan, which leaves behind all other countries in the Black Sea and Caspian Sea for the rate of economic development, stated its readiness to double its credit portfolio over the next three years. Azerbaijan plays a significant role in this portfolio.

At its previous meeting on 5-6 February the bank approved its strategy for 2007-2010, where it noted that the Azerbaijani Government indicated that the number of projects financed by the BBTD in the non-financial sector is not sufficient. The Government called on the bank to implement more projects in the private sector through direct financing, but not approval of loans through the banking systems.

The deputy minister announced that the BBTD does not set a limit for the amount member-countries can receive from the bank's credit resources. However, the bank sets a maximum limit on any one project of an estimated budget of $25mln, while the BBTD could attract resources for syndicated financing.

Over the past five years the portfolio of the BBTD in Azerbaijan was in the amount of $31mln on eight projects, or approximately 3% of the total amount of the bank's credit. Some $26mln of this sum was give to the country's banking sector. In the future there are plans to expand the area of financing to cover manufacturing and non-manufacturing industries

Mikayil Jabbarov, the Azerbaijani Deputy Minister for Economic Development, represents Azerbaijan at the BBTD.

BBTD set up its activities on 1 June 1999.