Azerbaijan's top bank ups authorized capital
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By Laman Ismayilova
The International Bank of Azerbaijan (IBA) takes steps to up the authorized capital after the change in the management.
The bank’s authorized capital will be increased by 600 million manats up to 1,241 billion manats through the new share issue, registered by the Financial Market Supervisory Authority.
“This capital increase is our next step towards successful recovery of the IBA,” said Khalid Ahadov, chairman of the IBA Board.
He added, that the Bank will continue reforms aimed at strengthening its capital base.
The shortcomings in the management, investment and loan policy of the IBA in recent years, as well as financing of less efficient, risky investment projects worsened the bank's financial state, caused increase in the share of distressed assets and reduced its liquidity.
In July 2015, President Ilham Aliyev signed a decree on the measures for rehabilitation related to the preparations for privatizing the state-owned shares of the IBA.
To overcome the current situation, restore the bank's financial position and ensure its sustainability, the distressed assets of the bank were transferred to the state-owned Aqrarkredit CJSC non-banking credit organization.
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