State Share in IBA Increased to 81.86%

In the first half of this year, revenues of the group of companies International Bank of Azerbaijan amounted to about 450 mln AZN. However, the capital of the bank’s owners fell by 24.5%.

In the first six months of this year, the bank suffered a loss amounting to 215.8 million manats.

While by the beginning of the year the bank's shareholders had retained earnings of 65.6 million manats, then by June 30, the bank's losses reached 130.4 million manats.

The bank unveiled audited financial statements for January-June 2015. According to the report, the volume of loans increased 19% to 9 billion 352.6 million manats. The bank's assets by 30 June amounted to 10.7 billion manats, an increase of 16.9%.

The bank's liabilities in the first half of this year increased by 20.2% and reached 10 billion 235 million manats.

It is noteworthy that while at the beginning of this year, the state's share in the capital of IBA amounted to 51.07%, on June 30 it reached 81.86%. How it happened has not been reported.

In July of this year it was ordered to achieve IBA financial recovery with a view to further privatization. To implement this task, the transfer of the bank’s harmful assets to the non-bank crediting organization (NBCO) Agrarkredit was envisaged. In September, the bonds of NBCO Agrarkredit were placed in the amount of 2 billion manats. These securities were acquired by the Central Bank. IBA informs that by the end of December the remaining bonds of 1 billion mantas will be placed. -----08B