NEWS FEED
Zoom
10:40 23 June
10:35 23 June
TOP 5

IBA to transfer bad assets of AZN 6B to Agrarcredit in Q1

International Bank of Azerbaijan will transfer bad assets of AZN 5.3-6 billion to state-owned non-bank credit organization Aqrakredit in the first quarter of 2017 in exchange for US-denominated assets, which will improve the bank's open FX position and replenish capital through reverse of provisions, APA-Economics reports citing to the statement of Moody's Investors Service.

Along with this, Moody’s says the bank will hedge the open FX position for future potential currency volatility through a forward contact.

 

“We continue to incorporate a very high likelihood of government support for IBA's long-term ratings. Along with the downgrade of BCA to ca, we have widened the government support uplift to six notches from previous three notches given aforementioned enlarged support measures from the state. The very high probability of government support is based on: the controlling stake by the government, which increased to 91.3% from 82.2% following the recent capital injection; still a significant market share by assets being the largest bank in Azerbaijan; and track record of providing financial support, including transfer of bad assets, capital injection and funding, as well as anticipated further explicit support measures”, the statement said.

 

Related news releases

VİDEO NEWS

PHOTO NEWS

  • Yearly budget transfers from advertising may rise 10-fold -...
  • Azerbaijan denies Armenian reports on infiltration attempt a...
+2
EXCHANGE RATE
FOREX
/ 23 June, 2017

USD
1.7022
 
EUR
1.8999
 
RR
0.0285