The work on the improvement of the International Bank of Azerbaijan (IBA) continues, Finance Minister Samir Sharifov said in an interview with ANS TV channel.
The Minister said that previous management of the bank made big mistakes in the work and today these mistakes are being given a legal assessment. "The bank's management was ignoring the instructions of the Supervisory Board of the IBA in many cases, and the data in the financial statements were distorted. All these led to the misappropriation of funds", Sharifov said.
Sharifov underlined that there also were cases of theft of the funds issued in the form of loans to related with the management parties.
"Today, along with the Interior Ministry and Prosecutor General's Office we continue to work for the return of bank funds issued in the form of loans. On the other hand, in order not to harm depositors, it was decided to transfer some distressed bank assets to Aqrarkredit CJSC. We are talking about the various plants and factories, whose work is currently unsatisfactory. We intend to improve them, and then sell in order to to return the part of the funds of the bank", Sharifov said.
On July 15, 2015 the President of Azerbaijan Ilham Aliyev has signed a decree on the measures for rehabilitation related to the preparations for privatizing the state-owned shares of the International Bank of Azerbaijan JSC.
The shortcomings in the management, investment and loan policy of the International Bank of Azerbaijan 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, said the decree.
In order to overcome the current situation, restore the bank’s financial position and ensure its sustainability, the distressed assets of the bank were transfered to the state-owned Aqrarkredit CJSC non-banking credit organization. Bonds for three billion manat were issued under the state guarantee to ensure IBA's liquidity instead.
Aqrarkredit CJSC is the biggest non-banking credit organization operating since 2001, whose shares are owned by the state.
The International Bank of Azerbaijan was founded in 1992 and is the largest bank of the country. Some 51.07 percent of stake in the bank’s capital is owned by the state, 48.93 percent – by private shareholders.
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