The process of uniting banks
Two commercial banks AGBank and Demirbank decided to join by signing a protocol of consolidation, said on January 26 Elman Rustamov, a chairman of the Central Bank Elman Rustamov. Taking into account the fact that both banks have the same power the experts believe that the merger will occur on an equal basis. AGBank has been operating since 1992. At present, its three founders are: the International Finance Corporation - 17.5%, the company Kazimir Partners - 10,0%, Chingiz Asadullayev - 23.270% Farzulla Yusifov - - 17.767%. Another 31.463% of shares own 61 minority shareholders.
Chairman of the Supervisory Board is Chingiz Asadullayev. He was twice elected deputy of the country's parliament. However, after winning last year's elections, the CEC canceled the results of the election in his district at the last moment. The media argued about business links of Asadullayev with the disgraced head of MNS Eldar Mahmudov. The banker denied these reports.
DemirBank (formerly called Azerdemiryolbank) has been operating since 1989, and is the first private bank in the country. Currently, the "25% + 1 share" in the bank is owned by the European Bank for Reconstruction and Development (EBRD). Another 10 percent of the shares belong to another foreign shareholder - Dutch Finance Development Company (FMO). Nothing is reported on the site about the local shareholders of the bank. According to unofficial data, the main owner of the shares is Rahman Hajiyev - Chairman of the Supervisory Board of the bank. Today in Azerbaijan there are 39 banks having licenses of the CBA. Earlier, the head of CBA Elman Rustamov spoke about the possibility of combining five or seven banks. —06D--
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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