Capital of JSC Bank Avrasiya Raised through Private Financial Investments of Shareholders

In the first nine months of 2014, taking into account allocations in the amount of 4.6 million manat for possible losses, the net loss of one of the most shadow banks, JSC Bank Avrasiya, amounted to 591.8 thousand AZN. Thus, the recent increase in the capital by 18 million manat, which happened twice, was due to cash investments of private money of its shareholders.

By the end of the year the shareholders of JSC Bank Avrasiya still found 10 million AZN to form the aggregate capital of 50 million manat desired by CBA. And who are these shareholders, in other words, the finally controlling party, even international auditors of the bank do not know since 2008. At each annual audit report they put the signature only with specific reservations, as International Financial Reporting Standards require the designation of the person controlling the companies.

According to the latest audit report compiled by the company Baker Tilly Azerbaijan (http://bankavrasiya.az/files/uploader/Bank%20Eurasia%20OJSC_IFRS_2013_az_Z.pdf), in 2013, the bank’s structure changed in 2013. The share in volume of 37.5% moved from LLC Thaining Global Inc to LLC Galaxy. No information of these companies exists in the State Register of Legal Entities, which is contrary to the law "On State Registration of m state register of legal entities". On the company Thaining Global Inc it is only known that it was one of the first three cofounders of Bank Avrasiya and the customer of major construction projects, such as Baku Palace, Baku Premium Villas, Bilgah Estates Baku (http://www.diainsaat.com/projeler-detay.asp?LanguageID=1&cid=77&id=84). The new shareholder (TIN 1401427871)) also applies to the construction sector. In 2012, it merged two companies (Photon and Yeddi Bulag). Director of LLC Galaxy is Nazim Agayev, who is also represented in several commercial structures of Ltd. Pasha Holding.

There is not any information about the other shareholder of JSC Bank Avrasiya - LLC Euro Standard (37.5% of the shares).

In previous years, 25% of the shares of the bank moved from LLC Agroland to LLC Azbiznescom. This company (TIN 1501192301) is registered in the hotel Excelsior Hotel Baku. The Director is Ashraf Kamilov, who manages several holdings close to the ruling family of Azerbaijan.