EBRD Urges Government to Privatize IBA Immediately

Baku / 29.11.18 / Turan: The European Bank for Reconstruction and Development (EBRD) published the Transitional Report 2018-19 on Azerbaijan, which also includes proposals for reforming the banking sector among the three priorities for the next year.

The EBRD once again called for the immediate privatization of the state"s stake in the International Bank of Azerbaijan (IBA). "Decisive steps are needed to complete the restructuring of the banking sector. The privatization of the IBA is one of the key priorities for risk reduction in the banking system and should be implemented immediately," the document https://www.ebrd.com/news/publications/transition-report/transition-report-201819.html underlines.

The EBRD supports the intention to reform the tax administration, and calls for strengthening the independence and activities of the financial regulator. In addition, the bank believes that the authorities of Azerbaijan should take the necessary steps to ensure the transparency and efficiency of the operations of the newly created state bodies.

The Azerbaijani government launched the privatization of the IBA back in 2005. Since then, the bank has experienced several crisis periods of its activity. At the beginning of 2015, it was practically insolvent. Financial investments from the state for its recovery in the amount of approximately 14 billion manat have not yet yielded the expected result. The state has over 91% of the share in the IBA. ------08D--