Restructuring of external debt of the International Bank of Azerbaijan (IBA) has not affected the country’s banking sector and the interaction between other commercial banks, as well as between banks and their customers, said Zakir Nuriyev, head of Azerbaijan Banks Association (ABA).
“The state has been fulfilling its obligations to IBA from the first day, by providing the bank with sufficient liquid assets. Therefore, the processes occurring in the IBA did not affect the banking sector,” he said on May 31.
Debt restructuring must not affect the ability of banks to attract foreign investment in the future, according to Nuriyev.
“It is also worth noting that the Azerbaijani banks do not see the need to attract foreign funds in large volumes, as there are now restrictions for the banks in attracting and placing them,” he said.
Earlier, the IBA commenced a process of voluntary debt restructuring as part of its rehabilitation.
The bank’s total debt to foreign creditors is $3.3 billion.
The International Bank of Azerbaijan has been operating since 1992 and is one of the country’s two state-owned banks. (Trend/Business World Magazine)