Finance

Finance

IBA-Moscow intends to double capital this year

10 April 2009 14:24 (UTC +04:00)

Moscow. Roman Agayev, Vugar Israfilov - APA-Economics. IBA-Moscow, Russia-based subsidiary of International Bank of Azerbaijan, has set it target to double its capital this year, said Fuad Abdullayev, the chairman of IBA-Moscow.

According to him, the Azerbaijan-based parent bank has been proposed to increase the subsidiaryâ€™s capital from 1 012 billion rubles (about 34.5 million dollars) at least to 2 billion rubles.
He believes that the capital increase will help strengthen the banksâ€™ position before foreign financial institutions and further raise its credibility.
In his view, in the face of the global financial crisis, raising funds is becoming an important criterion for confidence in the Russian banking sector.

He says that the bank intends to remain faithful to the principle of diversification in the fund-raising policy in 2009. So, along with the foreign and Russian resident banks, funds will also be raised through a set of deposit programmes for individuals.
In addition, IBA-Moscow would try to increase funds in rubles along with the US dollar.
Fuad Abdullayev sais the subsidiary may get ratings from an international rating agency in July or August this year.
â€œThis will lead to get credit lines in more favorable terms from the Central Bank of Russia and other private banks,â€ he added.