Government Preparing to Sell Collateral at IBA

The Cabinet of Ministers created a competitive commission on the sale and transfer to external management of the property, which is problematic asset of OJSC International Bank of Azerbaijan. These assets estimated at 5.6 billion AZN have been managed by the Agrarkredit non-bank lending agency on the order of the President of Azerbaijan since July 2015.

The commission composed of five people is chaired by the Deputy Minister of Finance, Chairman of the Supervisory Board of IBA Azer Bayramov.

The tender commission, based on well-grounded proposals of JSC Agrarkredit, will take decisions on the sale or transfer of assets to an external control. When deciding on the sale of property, its starting price will be determined by an influential independent appraiser. The sale will be carried out by means of an auction. At the same time, the commission is allowed to involve consultants in its activity.

The competition commission will also determine the mechanism and conditions for transfer of the mortgaged property to management.

Note that in early 2015 there was a scandal around IBA on the facts of unsecured loans for millions or even several hundred millions of AZN, and the theft of the bank’s resources. The former Chairman of IBA Jahangir Hajiyev is currently under arrest and his wife is wanted. ---08D