OREANDA-NEWS. On May 02, 2008 the International Bank of Azerbaijan (IBA) postponed applying a new tool - securitization of future cash flows, reported the press-centre of IBA.

IBA Deputy Chairman of Board Vagif Akbarov said terms of securitization will depend on terms of bonds issue.

“There is a private rule that bonds are to precede securitization. Another scheme can influence negatively benchmarks. As a results a question on securitization terms we are interested in, is a question about queue of application of financial tools,” V.Akbarov said.

Preliminary IBA planned securitization for 2008-2009 and still follows the schedule. The tool is designed to raise a debt on the basis of estimate of turnover on certain types of operations. For these ends the IBA is to establish SPV, a company to monitor real money, make schedule and pay interests from turnover on the raised funds when fixed date for that comes.