Capital of IBA to Be Increased in 2015

The process of capitalization of the International Bank of Azerbaijan will be continued this year. In October 2013 the shareholders adopted a four-year vision to increase the share capital by 500 million manat.

According to the presidential decree on the application of the state budget for 2015 on the implementation of financial rehabilitation, including an increase in the authorized capital of state-controlled enterprises, more than 116 million manat will be spent. Experts point out that we are talking primarily about the IBA, as virtually all other state-controlled companies will have their capital funds raised by individual state budget items. As a rule, this means the increase in the share capital of IBA is drawn from the Reserve Fund of the Cabinet of Ministers in the state budget.

The concept of increasing the authorized capital of IBA provides attraction of AZN 100 million from investors, including from the state, in 2015. However, it is possible that the capital will be increased by 200 million AZN, of which at least 50% will be invested by the Ministry of Finance, which owns 50.65% stake in the bank.

Last time an independent audit of the financial statements of IBA covered the first six months of 2014, according to which the paid-up share capital amounted to 563.295 million manat. The total shareholders' equity exceeded 705 million AZN.

It should be noted that the assets of IBA on July 1, 2014 amounted to 8.7 billion AZN. The share of bank assets in all banks in the country (22 569.8 million AZN) at that time was 38.5%.  ----08B