TODAY.AZ / Business

Restructuring of IBA’s obligations not to affect its subsidiaries

15 May 2017 [18:00] - TODAY.AZ

By Azernews


By Sara Israfilbayova

The International Bank of Azerbaijan (IBA) has launched the process of voluntary restructuring of its obligations.

The process of restructuring the currency obligations of the IBA will not affect its IBA-Moscow and IBA-Georgia subsidiary banks. The bank told Trend that both subsidiaries do not have foreign obligations.

“IBA-Moscow and IBA-Georgia comply with all regulatory requirements of the central banks of the countries where they operate,” the bank said. “The financial indices of IBA-Moscow and IBA-Georgia exceed all requirements of the central banks of both countries."

The IBA added that IBA-Moscow and IBA-Georgia successfully fulfill their obligations to customers.

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 International Bank of Azerbaijan JSC.

The shortcomings in the management, investment and loan policy of the IBA, 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.

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 the Republic of Azerbaijan. Pending the implementation of the planned restructuring process, and to ensure equal treatment of all affected creditors, IBA has suspended payments of principal and interest with respect to all obligations to be included in the operation (other than interest under trade finance facilities).

The process will lead to a meeting of all creditors affected by the restructuring plan. If approved by two-thirds of the affected creditors by value the plan will be accepted and become binding on all of them. 

The IBA has been operating since 1992 and is one of the country's two state banks. The IBA-Moscow was established in 2002, the IBA-Georgia-in 2006.

URL: http://www.today.az/news/business/161207.html

Print version

Views: 675

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: