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IBA involves big loan from abroad through Islamic financing - UPDATED

IBA involves big loan from abroad through Islamic financing - <span style="color: red;">UPDATED

16 November 2012 12:55 (UTC +04:00)

Baku. Nijat Mustafayev – APA-Economics. The International Bank of Azerbaijan intends to extend customer base by formation of new market segment with the application of Islamic banking, IBA's director of Islamic banking Behnam Gurbanzade said, APA reports.

According to him, this year the IBA signed a $ 1.5 million agreement with Bosnia Bank. Another $ 15 million was involved through the Islamic Development Bank for the development of small and medium entrepreneurship. Negotiations are currently on involvement of a syndicated loan (‘murabaha’ - trade financing) in the amount of $150 million.

Gurbanzade added that as of October 1 2012, total assets of IBA on Islamic Financing made $58 million, but in total nearly $65 million was attracted. $58 million of it was spent to funding of 6 project and 20 sales deals. At present, the refinancing of large agricultural project in Sheki is also nearing the end.

Moreover, Gurbanzade expressed that the group plans to apply Islamic financing system in the whole country in 2013-2015, to establish services to corporate and retail customers, attract foreign investment.