Azerbaijan's IBA sees assets fall 29% y/y in 2017 after debt restructuring

By bne IntelliNews January 12, 2018

The assets of the International Bank of Azerbaijan (IBA), the largest lender in the country, contracted by 28.9% y/y to AZN8.7bn ($5.1bn) in 2017, the state-controlled bank reported on January 10.

The lender underwent a restructuring of its debt last year, whereby $3.3bn worth of its foreign obligations were swapped for government-backed ones. It was the second government rescue for IBA - the first occasion was in 2015. The bank's problems were the result of a faulty lending model, coupled with currency depreciation and a depressed business environment, in which generating new business has been difficult.

Once its balance sheet is clean, Baku intends to reprivatise IBA, having increased its share in the lender to over 80% since 2015.

At end-December, IBA's obligations stood at AZN7.75bn, its loan portfolio at AZN1.8bn and its deposit portfolio at AZN1.5bn, the lender reported.

The lender said that it was making efforts toward increasing profitability, optimising costs and strengthening its capital position, which stood at AZN525mn at end-December. 

Related Articles

Iran, Russia, India to discuss INSTC transport corridor stretching to northern Europe

India, Russia and Iran are to hold a trilateral meeting on developing the International North-South Transport Corridor (INSTC) on November 23, according to Indian media outlets. Those envisioning ... more

Collapse of rial drives surge of bargain-seekers from Azerbaijan into Iran

Azerbaijan has reported a 43.4% rise in the first eight months of this year in the number of its citizens crossing the border to Iran, AzerNews reported on September 23. The collapse in the value ... more

Orban first Hungarian PM to visit Kyrgyzstan, wants more business with Central Asia’s Turkic nations

Hungary has opened a $65mn credit line to support partnerships between Hungarian and Kyrgyz businesses in Kyrgyzstan, Minister of Foreign Affairs and Trade Peter Szijjarto said in Kyrgyzstan’s ... more

Dismiss