As a priority to strengthen control over the financial sector and to ensure the financial stability, the International Monetary Fund is considering accelerating the privatization of OJSC International Bank of Azerbaijan (IBA). This was stated by the head of the IMF mission Raja Almarzogi after his visit to Baku.
The IMF insists on the restructuring of the International Bank of Azerbaijan on the basis of international principles to ensure the reduction of the bank. This should be followed by its privatization in a transparent manner.
"In conditions of incomplete property on IBA, subordinated loans given to it by the Central Bank of Azerbaijan complicate the control of the bank," the IMF said.
Note that the state controls over 51% of the IBA. Several years ago, the government started privatization of the state stake in the bank again. For this purpose, a consortium was created with international legal and auditing firms. However, since 2013 the process has been suspended. The formal reason was the increase in the bank's capitalization. At the same time it was clear that at certain levels of government there is resistance to the idea.
In March and May of this year there were major processes around the IBA in connection with problem loans, the total size of which, according to some estimates, is more than a few billion US dollars. The return of these loans involved law enforcement agencies, through which some of the loans were repaid. ----08D
Economics
-
In Baku, grappling with growing environmental challenges, experts and policymakers convened on Friday for an international scientific conference titled “Sustainable Environment: Transition to Green Energy.” The event highlighted the urgent need for innovative strategies to combat pollution and advance renewable energy initiatives.
-
Kazakhstan is set to increase its oil transit through the Baku-Tbilisi-Ceyhan (BTC) pipeline by 5.1% in 2024, reflecting growing regional cooperation and diversification in energy routes. According to figures obtained by Turan News Agency, the total volume of Kazakh oil transiting through the BTC pipeline is projected to exceed 1.464 million tons, up from 1.392 million tons in 2023.
-
In a groundbreaking development for Azerbaijan’s energy sector, GL Group, a prominent Azerbaijani oil company, has announced plans to drill the country’s first horizontal well on land, reaching a depth of 4,400 meters with a lateral section of approximately 400 meters. The project, a milestone in the region’s oil exploration history, is set to take place at the Kirsangi-Garabaghly onshore fields.
-
The Central Bank of Azerbaijan (CBA) forecasts an annual inflation rate of 5.1% by the end of 2024, comfortably within the target range of 4% ± 2%. However, recent data indicate that inflationary pressure has significantly eased over the year: in October, the inflation rate stood at 3.4%, slightly down from 3.5% in September. Official data for November have not yet been released, leaving room for speculation about possible year-end adjustments.
Leave a review