BANK May 11 The International Bank of
Azerbaijan (IBA), the largest bank in the ex-Soviet country,
said on Thursday it planned to exchange some if its liabilities
for Azerbaijan's direct sovereign liabilities under a
The state-owned IBA is now being reorganised after the
International Monetary Fund proposal and President Ilham
Aliyev's order to clean up its balance sheet.
The bank, which started the proceedings for voluntary
restructuring of its obligations, said in a statement that it
had suspended payments of principal and interest with respect to
all obligations to be included in the operation.
Part of this process, IBA did not make the scheduled payment
under $100 million subordinated loan owned to Rubrika Finance
Company Ltd, it said in the statement.
IBA added that it continued to conduct business with its
clients as usual, including all transactions in relation to
individual and corporate deposits.
"All other services and operations of IBA will continue as
usual," the bank said.
(Reporting by Margarita Antidze; editing by Katya Golubkova)