IMF urges Azerbaijan to restructure its largest bank

The capitalization plan of theInternational Bank of Azerbaijan (IBA) in absence of a restructuring of thebank is a serious source of concern and creates risks to the system, theInternational Monetary Fund’s mission for Azerbaijan has said.

“An unreformed IBAundermines the development of the banking system and could result in high costsfor the shareholders, including the government,” it said on the IMF website. “Themission urges the government to take decisive steps to combine thecapitalization of the bank with a plan to restructure its operations andgovernance in line with internationally accepted practices.”

IBA, 50.2 percent of whichis owned by the state, is Azerbaijan’s largest bank.

ANN.Az