Who Does Bank Technique Deny?

JSC Bank Technique sees the way out of the crisis in the optimization of costs, although it does not recognize the negative.

Judging by its information, in recent days a number of Azerbaijani media spread unfounded rumors about the activities of Bank Technique. In this regard, Bank Technique said that taking into account the current situation, the bank is working on cost optimization. Due to the recent termination of cooperation with notaries and the Baku Metro, the bank is forced to cut the number of its structures and take other measures to optimize. The bank claimed that it continues to operate as usual, and in the near future it will provide its customers with better service.

As Turan wrote recently, in July, just two international rating agencies (Fitch Ratings and Moody's Investors Service) identified a range of problems of the bank. The first of them has withdrawn its ratings because of the bank's refusal to cooperate, while the second has lowered the long-term issuer default ratings. So, on deposits, they lowered it from Caa1 to Caa2 with a negative outlook, and on a baseline credit assessment (BCA) - a Caa2 to Caa3.

According to experts of the agency, in view of the February devaluation erosion of the bank's capital amounted to 25 million manat ($ 23.8 million). The main shareholder of the bank was planning to grant 8 million manat as a subordinated loan, but Bank Technique needs at least 28 million manat, of which 5 million manat should be in the form of Tier I capital.

JSC Bank Technique was created in 1994. Since June 2013 the largest shareholder of the bank is Beaufort Investissements SA from Luxembourg with 78.4421% of the shares, while the remaining 21.5579% belongs to physical persons. --17D

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