Non-bank Credit Organization CJSC «Aqrarkredit» intends to issue interest covered bonds totaling 3 billion manat. The State Securities Committee (SSC) registered the relevant prospectus. How can an organization with a registered capital of 29 million manat have so many opportunities? This is due to the fact that the record issue is part of measures to improve the financial condition and improve the management of OJSC "International Bank of Azerbaijan," the return of overdue loans issued by the bank, and on the situation with the management of problem assets.
On July 15, the President signed a decree on measures to improve the health, related to the preparation for privatization of IBA shares owned by the state. The document reads that the flaws committed in recent years in the management and investment and credit policy of the IBA, including the financing of the less efficient risk investment projects have led to the deterioration of the financial situation of the bank, increasing the share of troubled assets and contraction of liquidity.
To resolve the situation and restore the financial position of the bank , its bad assets have been transferred to JSC «Aqrarkredit».
The government JSC «Aqrarkredit» with registered capital of 29.52 million AZN has been operating since 2001. The International Bank of Azerbaijan operates since January 1992. The main shareholder of the bank is the Ministry of Finance of Azerbaijan Republic (51.07%), other shares are held by various individuals (39.63%) and legal (10.17%) persons. --17D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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