Foreign creditors reject IBA’s restructuring plan - UPDATED

Baku. 26 May. REPORT.AZ/ Foreign creditors of the International Bank of Azerbaijan (IBA) are taking measures on blocking the proposed plan on restructuring of $ 3,3 bln. debt of the bank. 

Report informs referring to Finanz.ru, foreign creditors says that including deposits of the State Oil Fund of Azerbaijan (SOFAZ) in restructuring plan of the bank has weakened votes on making a final decision.

"IBA’s presentation in London meeting caused anger of creditors. Including of state-controlled SOFAZ’s deposits in the restructuring plan maintains about 1/3 of votes for the bank. As a result, chances of foreign investors to oppose the plan is reduced", a source said.

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The creditors have expressed their concerns on the matter to Finance Minister Samir Sharifov at the London meeting. The minister answering the question why the state has suddenly stopped to support the IBA, said that the IBA was never guaranteed by the state: The banks is state-controlled, but it doesn’t mean that the government undertakes all responsibility for restructuring the bank’s debts.” Besides, the minister called on creditors to adopt the plan.

In addition, a letter of the US transnational law firm Shearmean & Sterling LLP writtenon behalf of “a number of international financial institutions” says that in case of non-taking account the claims of creditors in the restructuring plan, members of the group are ready to take appropriate steps to protect their interests."