Azerbaijani finance minister announces reasons for restructuring of IBA’s liabilities

Azerbaijani finance minister announces reasons for restructuring of IBA’s liabilities
  • Clock-gray 15:20
  • calendar-gray 30 May 2017

“According to law, the funds of the Single Accumulative Pension Fund JSC are guaranteed by the state and the government is responsible for protection of money of pensioners. Therefore, the government is interested in protection of pension assets. I’ve already talked with my Azerbaijani counterpart in this regard. Artur Rasizade assured me that the creditors will receive all support on repayment of the debt. On May 23 Azerbaijani side met with international creditors, which included Kazakh representatives”, the prime minister added.

 

He noted that the finance minister Bakit Sultanov is to discuss this issue with his Azerbaijani counterpart Samir Sharifov.

 

In turn, Sultanov said he has already held discussion with his counterpart: “I have discussed this issue with Samir Sharifov. He said that the main reason to stop fulfilment of liabilities by IBA is manat devaluation. Azerbaijani government seriously controls this issue. Our counterpart persuaded that they will do their best to protect the interests of international creditors. We asked them to provide information availability”.

 

Earlier, Kazakh Finance Minister Bakit Sultanov said that the issue of return of the investments made by the Single Accumulative Pension Fund of Kazakhstan in the bonds of the International Bank of Azerbaijan (IBA) may be solved in autumn.

 

“In July 2017 the creditors will discuss restructuring plane of the IBA’s liabilities. If 2/3 of the creditors support the plan, the issue may be solved in the autumn”, the minister said. 

 

According to him, a Working Group, consisting of representatives of Central Bank and government, has been created to study versions submitted by the IBA: “On May 23 IBA submitted three restructuring versions to the creditors in London. The Working Group will choose one of these versions”. 

 

According to National Bank of Kazakhstan, in October 2014 the Single Accumulative Pension Fund invested $250 million in 10-year bonds of IBA. Yield makes up 8.25%.

 

Other news