Azernews.Az

The International Monetary Fund expects steps to be taken for the privatization of the state-owned share in the International Bank of Azerbaijan (IBA), the country`s largest bank, by early 2013 at the latest, an IMF official said on a visit to Baku last week.

``Public support has strengthened IBA`s capital and liquidity and it requires a more comprehensive approach,`` Nadeem Ilahi, deputy head of the IMF Middle East and Central Asia department, told a press conference in Baku. ``The IMF mission calls on the authorities to privatize the bank as soon as possible and in compliance with the principles of transparency. The government is working in this area and we hope concrete steps will be taken in this direction by the end of this year and the beginning of next year.``

Ilahi added that government support for IBA was necessary.

``We have discussed with Azerbaijan the long-term plans regarding IBA. According to our impressions, substantial work is underway in this regard. IBA is a very important asset for the country, and privatization is one of the tools that will make it work better,`` Ilahi said.

He said IBA has a considerable impact on the entire banking system of Azerbaijan, and the bank should be dissolved, otherwise, problems for the domestic banking system may emerge.

A consortium consisting of PricewaterhouseCoopers Audit Azerbaijan (PwC) and Salans UK law firm is consultant for the privatization of IBA.

IBA is a semi-public bank and its main shareholder is the Azerbaijani government, which owns a 50.2 percent stake. The remaining 49.8 percent is owned by private individuals and legal entities, including banks.