IBA: Recomendations of IMF are baseless

IBA: Recomendations of IMF are baseless
# 29 March 2013 14:36 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. International Bank of Azerbaijan assesses the recommendations of International Monetary Fund on restructurization and diminishing of bank as baseless and contrary to its view on capitalization and strengthening of financial-banking systemç said the IBA Deputy Chairman of Board of directors Rashad Hajiyev.

Hajiyev also noted that bank regularly meets with IMF’s missions during past years and submits necessary information about IBA’s and country’s banking system.

But Hajiyev regretfully underlines that statements and recommendations of IMF missions that are declarative, not deep and do not change yearly, lost actuality. As an example he showed IMF recommendations about diversification of Azerbaijan’s economy and capitalization of bank system. According to him, these recommendations are not changed about some years. He also stresses that the IMF which recommends capitalization of bank, at the same time recommends restructurization and diminishing of the bank. This is contrary to the issue on strengthening of bank system.

“We ask reason of diminishing of bank in every meeting but don’t see any result. We only suppose.

He says the depositors, customers and partners must know that bank has not unsound assets and bank’s profitability, capitalization and quality of assets prove it: “the mission offers restructurization and diminishing of the biggest bank of the country instead of consolidation processes. This will cause weakening of bank system”.

Hajiyev also said the IBA has cooperation experience with ADB, IDB, BSTDB and other international and regional banks, export-import agencies of several developed countries.

IBA’s assets during past 12 years increased by 25 times, loan portfolio – by 30 times, customer deposits – by 58 times and authorized capital – by 148 times.

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