Khalid Ahadov: IBA is expected to get profit by year-end

Baku. 7 February. REPORT.AZ/ Chairman of the Board of OJSC "International Bank of Azerbaijan" (IBA) Khalid Ahadov interviewed by the Reuters news agency.

Report was informed in the bank.

According to report, Khalid Ahadov spoke about reorganization activities of the International Bank of Azerbaijan and noted that they cover three areas. According to him, these measures include the transfer of distressed assets of the IBA to “Aqrarkredit” CJSC in the framework of the President's decree of July 15, 2015, which gave the bank liquidity in amount of 10 billion AZN. Another measure was the placement in ttthe bank of deposit in the amount of US$1bln from the State Oil Fund of Azerbaijan. Earlier this year, the government has also increased its share in the IBA’s authorized capital.

Khalid Ahadov said that before sending the rest distressed assets to “Aqrarkredit” CJSC, work is underway to determine the amount of next tranche, which will be allocated to the bank: "According to preliminary calculations, next installment will be about $3 bln, which will enable the bank to provide the return of reserves in amount of 500 million AZN in capital", he said. According to him, the next tranche is expected in the first quarter (Q1)2017.

Khalid Ahadov also said that currently measures to reorganize the IBA should enable the bank to get at least even a small profit by end of 2017. He added that the bank has no problems with the performance of their external obligations.

Speaking about preparation for IBA’s privatization, Khalid Ahadov said that the process will be carried out gradually and in parallel with organizational and recreation activities. He also shared his opinion about possible investors, who may participate in the privatization process: "For us it is very important to involve in the privatization process such international organizations as International Finance Corporation, European Bank for Reconstruction and Development, Asian Development Bank, whoch are interested in the socio-economic development of Azerbaijan. Besides, a preference can also be given for private foreign financial institutions that will be able to bring new technologies to the IBA and a new breath. Process of privatization may attract also local investors through placement of shares on domestic stock market."