IMF calls to speed reform to privatize Azeri bank
The International Monetary Fund (IMF) calls on the Azerbaijani
government to pursue vigorously the reforms required to privatize
the International Bank of Azerbaijan (IBA), says Nienke Oomes, who
heads the IMF mission in the country.
Oomes told a press conference Thursday that the Fund has been making this call for a decade.
"We are not suggesting IBA’s immediate privatization. This is a lengthy process. Its realization will take several years," Oomes said, adding that the IMF believes the bank should be privatized in stages.
She aslo said that while opening bids for IBA’s acquisition, the state of the domestic market should be taken into account, i.e. "the government should be able to sell the bank for the price it can afford."
"The situation in Azerbaijan is somewhat different from that in other countries. Thus, IBA holds a considerable share of the market - 50 percent," Oomes said, adding that this is undesirable in terms of promoting competition. Therefore, the IMF has been consistently calling for the bank’s ownership to change hands, she added.*
Oomes told a press conference Thursday that the Fund has been making this call for a decade.
"We are not suggesting IBA’s immediate privatization. This is a lengthy process. Its realization will take several years," Oomes said, adding that the IMF believes the bank should be privatized in stages.
She aslo said that while opening bids for IBA’s acquisition, the state of the domestic market should be taken into account, i.e. "the government should be able to sell the bank for the price it can afford."
"The situation in Azerbaijan is somewhat different from that in other countries. Thus, IBA holds a considerable share of the market - 50 percent," Oomes said, adding that this is undesirable in terms of promoting competition. Therefore, the IMF has been consistently calling for the bank’s ownership to change hands, she added.*
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