The management of the International Bank of Azerbaijan (IBA) expects positive results from the voluntary restructuring plan of the IBA’s foreign obligations, Chairman of the bank’s Board Khalid Akhadov told reporters in Baku on June 21.
The IBA has recently commenced a process of voluntary restructuring within the framework of its financial improvement.
The restructuring plan contemplates a restructuring process to be effected through an exchange of IBA’s senior and junior foreign currency obligations for direct sovereign obligations of Azerbaijan.
Before the transfer of debts to the government is completed, the implementation of foreign creditors' foreign currency liabilities (with the exception of payment of interest on transactions for trade financing) is suspended.
The total amount of these commitments is $ 3.3 billion. Among the major foreign creditors of the IBA are the American company Cargill, Citibank, Rubrika Finance Company Limited, Credit Suisse AG.
The IBA appealed to New York and London Courts. Both courts made a positive decision regarding the IBA to prevent lawsuits from foreign creditors regarding the bank's assets.
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