International Bank of Azerbaijan set to support key regional projects

In February 2007, the bank opened a new branch in Georgia. The Tbilisi office of IBA will finance construction works for the Georgian section of the Baku-Tbilisi-Kars project. The Georgian Times interviewed IBA's General Director Samir Veliyev to learn more about the bank's plans and services.

You have just entered into the Georgian banking sector. What is your agenda?

Our Bank has been set up as a joint stock company on the basis of the two banks -  International Bank of Azerbaijan and CI Bank . We will be in charge of construction works for the first stage  of the Baku-Tbilisi-Kars railway. Later we will offer services to corporative clients.

What motivated you to take interest in Georgia's banking system, and could you evaluate the Georgian investment climate?

First of all we believe it will be a lucrative business for us. Besides, we have a historical relationship with Georgia, given the historical background of our countries. Our strategy is to open branch offices in former Soviet countries, though we also have our representatives in Frankfurt, London, and the  U.SIn  Moscow we opened the International Bank of Azerbaijan-Moscow, which has two branches in Russia: in Ekaterinburg and St Petersburg. As I mentioned earlier, our entry into Georgia is associated with financial interests as well as with good neighborly relations between our countries and good economic and political strategies.

Global Finance magazine (New York, USA) picked the International Bank of Azerbaijan as the Best Bank in the World's Emerging Markets (for the Central Caucasus region). Tell us a bit more about the strategy that helped you to achieve this success.

Our bank's history began 15 years ago. This year we are celebrating the 15th anniversary of our successful activities. The bank was established in 1990 as the Azerbaijani Office of USSR Vneshekonombank. In 1992, after the collapse of Soviet Union, it transformed into a joint-stock bank with the government as a major stockholder. Our bank's main policy is to widen activities and expand our network of organizations as well as expanding our commercial and physical entities. 

Presently 18 other banks are operating in Georgia. What new services will you  offer consumers to win them over from the competition?

Georgian banks are quite successful. We have entered into the market and see that whatver services the international banking system can offer are already being offered by Georgian banks. So we do not plan to offer Georgian consumers new services. Your banking sector is very developed. So our main goal will be to find our place in the Georgian market, and to offer services to corporate companies and even to physical entities in the nearest future.

What services do you presently offer Georgian customers?

We entered the Georgian market just few months ago. Officially, we registered and started operations in  February 2007. It is not an easy job to offer many things for such a short period of time. We are still in  preparation stage. We will offer complete banking services after one month when the reconstruction activities in our office have been finished. Now we are preparing to start. Currently we offer routine banking services to our customers.

What kind of projects are you going to finance in the future? What will be the criteria for you in choosing projects to finance?

We are not considering any projects at this stage. We are in consultations with potential partners but it is too early to speak about this. Right now we are supporting only the Baku-Tbilisi-Kars project.

What has been the most successful project that you have realized?

International Bank of Azerbaijan has been attracting short-term credits for the past 2 years. The last one was more than 100 million USD.
 
/The Georgian Times/