OREANDA-NEWS. July 04, 2011. Moody’s, International Ratings Agency believes that privatization of the International Bank of Azerbaijan (IBA) would positively affect on credit rating of the bank, reported the press-centre of IBA.

As 1news.az states with reference to Moody’s report, “privatization will lead to increase of autonomous power, transparency, and improvement of corporate governance and strengthening of the bank capitalization”.

“The privatization will also enable improvement of banking sector’s competitive dynamics and strengthening of the banks’ aggregated financial indicators”, - statement says.

IBA consultants will prepare recommendations on privatization conditions, lend legal and technical assistance, estimate the government’s share and help the Bank to attract strategic investors.

Azerbaijani branch of “PriceWaterhouseCoopers Audit Azerbaycan”, “Salans UK Limited”, “Rothschild & CIE” consortium has been chosen the consultant for provision of services on privatization process and reduction of state share (divestiture) in IBA’s equity capital.

"It will probably be a lasting project and we do not expect IBA privatization to finish this year", - the report says.

Being Azerbaijan’s largest bank IBA has dominating position in banking sector. According to data for the end of 2010, 42% of total volume of banking system assets, 43% of credits, 36% of deposits, including 24% of population deposits fall on the share of this bank.

"The bank’s privatization will also support its dominating status, as IBA will make profit from capital increase which will enable to increase large companies’ financing as well as large number of clients through wide distribution network",- the report says.

According to Moody’s expectations the bank’s capital will considerably increase due to the issue of shares.

At present the main shareholder of the International Bank of Azerbaijan is Azerbaijani government which owns 50,2% of shares. 49,8% belong to individuals and legal persons.