International Bank of Azerbaijan can be privatized by open auction

As it was reported to "Trend" agency, the changing of plan was provided by the order of President of Azerbaijan "About additional measures on deepening the reform of bank and financial system of Azerbaijan"

According to this order the President entrusted the Ministry of Economic Development at participation of Bank itself to take measures on gradual shortening of state share in authorized capital of IBA. This action will be accomplished by splitting of state share and it's selling by parts or by additional issuing of shares. "In this way the fact that the order doesn't  mention the structure which will take part in privatization of banks, provides  for announcing of open tender for privatization of state Banks, including IBA.  For the present time it is not clear if the state shares will be sold by blocks" - the officials stated.

Previously it was supposed to sell 20% of shares to European Bank of Reconstruction and Development, but disagreements have been connected with the price. But it is mentioned in the new order of President that the purchasing  price for the shares (inside the country and at the international markets) is  determined with consideration of market state, results of banks for the last  accounting period approved by one of authorized international companies. The purchaser or purchasers must agree with economic interests of Azerbaijan and decision about selling of each share block is taken on the basis of country's law.

"The terms for this tender have not been determined yet", - noted the officials.