BANK, May 11 (Reuters) - 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 restructuring plan.
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)