JAN. 28 2017 (The Conway Bulletin) — The International Bank of Azerbaijan (IBA), majority owned by the Azerbaijani government, has dropped sponsorship of a Baku football team as part of a cost-cutting drive.
Dropping sponsorship of Inter Baku, a top tier team, is another sign that the tough economic conditions have hit IBA hard. A few years ago such a move would have been unimaginable.
“In accordance with new strategic goals limitation of the IBA’s sports support will help the bank optimise its expenses and direct resources to the sphere of finance and banking, which are priority,” IBA chairman Khalid Ahadov said in a statement released by the bank.
“That will increase the efficiency of the recovery processes, conducted with government’s support.”
At the end of January, the Azerbaijani government increased its stake in IBA to 77% from 56% in order to ensure the stability of the bank, Azerbaijan’s biggest. Analysts have been warning for the past 12 months that an economic downturn was pressuring the banking sector in Azerbaijan. The Central Bank has also withdrawn trading licences from some of the smaller banks.
ENDS
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(News report from Issue No. 315, published on Feb. 3 2017)