OREANDA-NEWS. May 13, 2010. The International Monetary Fund (IMF) is glad over readiness of the country’s government to follow its old recommendation on privatisation of the state participation (50.2%) in the International Bank of Azerbaijan (IBA).

Head of IMF Mission to Azerbaijan Nienke Oomes said, they recommended privatization of IBA as early as ten years ago and it is not the new recommendation.

“Today, in the conditions of the global crisis, we do not recommend bank privatisation at once. This process can last within several years that will allow the government to receive the good price from sale of the participation. Such move will allow to raise competition in the banking sector and stability of the most banking system – it is not normal, when 50 % of its assets  and operations are focused in one bank,”  N. Oomes said.

She also supposes that privatization of the  bank will promote reduction of  interest rates on credits of banks for national economy.

In review of Azerbaijan concerning Article IV directors of IMF encouraged the authorities to press ahead with further reforms to improve monetary policy transmission and access to credit by the non-oil sector, foster banking sector consolidation, and privatize IBA.