Cabinet sent AZN 50.2 million to IBA authorized capital after the fact

The Cabinet of Ministers adopted on 6 December last year, a dubious decision, which only made public this week. Government is "considering the proposal of the Ministry of Finance" allocated from the reserve fund of the state budget for 2012 of 50.2 million manat, increasing the share of the state in the International Bank of Azerbaijan.

As is known, in March 2012, even before placement of the shares was launched, the Treasury paid for the state's share. This was stated by IBA Chairman Jahangir Hajiyev. According to the consolidated financial statements of the bank for the first half of 2012, the registered capital was more than 290 mln. In other words, payment by the state of 50.2% of the new issue was made before the start of its official accommodation - 4 June.

The bank told Turan that there is no new acquisition of the shares by the state. In this case, the bank refused to comment on the Cabinet of Ministers of December 6, number 319S. It must be assumed that the Finance Ministry hastened to pay on behalf of the state the purchase of shares of the new issue to improve the adequacy of its capital. By the end of the year it was decided to make the financial transaction at the government level. However, it was already after the fact.

Issuance of shares of IBA, which will bring its registered capital to 340 million manat, will end in early June. - 08B-