New York Court Satisfies Appeal of International Bank of Azerbaijan

Baku / 13.05.17 / Turan: New York court satisfied the appeal of International Bank of Azerbaijan (IBA) and decided to protect the assets of this bank from the claims of foreign creditors in the United States.

In the process of voluntary restructuring of IBA's external obligations, foreign creditors will not be able to put forward their demands on the bank's assets, the statement of IBA says.

The plan of voluntary restructuring of external obligations serves to strengthen the bank's financial position of the bank. This process will ensure long-term financial stability of the bank and increase its market value at the pre-privatization stage. The most important component of this process is that during the restructuring, foreign creditors will not be able to put forward their claims on the bank's assets.

According to the chairman of the bank's board Khalid Ahadov, IBA appealed to the New York court in order to obtain recognition of the process of restructuring external obligations in the US and preventing claims from creditors.

"The court granted our appeal," said Ahadov.

The restructuring plan provides for the transfer of debts in foreign currency attracted by IBA from a number of foreign financial institutions to the state. The process covers exclusively external obligations.

All other obligations, including operations on protected and unprotected deposits, timed and unlimited deposits of Azerbaijani citizens, legal entities and non-residents, are carried out as usual, the report says. -06D--