Ministry of Finance Instructed to Increase Capital of IBA

Next year, the capital of OJSC International Bank of Azerbaijan will be raised. This step is provided by the decree of the President of Azerbaijan about the application of the law "On State Budget for 2017".

The Ministry of Finance is instructed to repay the loans borrowed by public JSC and enterprises from the Central Bank through the remainder of the single treasury account of the state budget, and funds of the Guarantee Fund for loans raised under the state guarantees. If these funds are not sufficient for full repayment of the debt, the free remainder of the CBA profits for 2015 will be used. According to the Law of Azerbaijan "On the Central Bank", its profit shall be transferred to the state budget.

The decree noted that the right to request funds for these loans is transferred to the Ministry of Finance.

The authorized capital of the Deposit Insurance Fund is to be increased, too.

The authorized capital of IBA is 641,200,000 manat. The share of the Ministry of Finance in the bank's capital is 54.96%.

In February 2016 the shareholders decided to increase the capital of IBA by 500 million manat. But the decision was not executed in a timely manner.    -----08D