Bank Technique Convenes Meeting of Shareholders

On August 31 a general extraordinary meeting of shareholders of JSC Bank Technique will be held. So says the announcement of the bank at an undisclosed agenda.

As Turan wrote on these days, recently just two international agencies (Fitch Ratings and Moody's Investors Service) identified a range of problems that the credit structure is facing. The first of them has withdrawn its ratings because of the bank's refusal to cooperate, and the second has lowered its long-term issuer default ratings. So, on deposits, they lowered it from Caa1 to Caa2 with a negative outlook, and on a baseline credit assessment (BCA) - from Caa2 to Caa3.

According to experts, in view of the February devaluation the erosion of the bank's capital amounted to 25 million manat ($ 23.8 million). The main shareholder of the bank was planning to grant 8 million manat as a subordinated loan, but Bank Technique needs at least 28 million manat, of which 5 million manat should be in the form of Tier I capital.

JSC Bank Technique was created in 1994. Since June 2013 the largest shareholder of the bank is the Luxembourg company Beaufort Investissements SA with 78.4421% of the shares, while the remaining 21.5579% are at physical persons. --17D-