The ultimate goal of recovering the International Bank of Azerbaijan is to reduce its assets and liabilities and the bank’s privatization should be the next step, Azerbaijan’s Finance Minister Samir Sharifov said.
He noted that the bank’s recovery was quite a difficult process and it was too early to talk about its completion.
“Unfortunately, the improper operation of the bank’s previous management has led to a large amount of external debt. The bank’s liabilities are formed in foreign currency, while the assets are issued in manats (the bank’s troubled assets were transferred to Aqrarkredit CJSC and bonds under state guarantee were issued instead of this)”, Sharifov said.
“However, putting such volume of national currency to the market can negatively affect the exchange rate of manat. Therefore, the recovery process is linked to the current macroeconomic situation”, the minister added.
He noted that the main goal was to prepare the bank for privatization.
“After the recovery, the bank’s assets and liabilities will be substantially reduced and the bank will be ready for privatization with healthy assets”, said Sharifov.
The International Bank of Azerbaijan was founded in January 1992. (Trend/Business World Magazine)
