The devaluation of Azerbaijan’s national currency, the manat, in February 2015, was the culmination of a series of long-term problems found within the “International Bank of Azerbaijan” Open Joint Stock Company (hereafter referred to as IBA). Assets that had lost value and sharply increased commitments added to other key factors, such as mismanagement of governance, trust, and corruption mechanisms on the part of the government and the negligence of supervisory bodies, and together resulted in the resignation of IBA’s Chairman of the Board, Jahangir Hajiyev, by a decision of the Bank’s Supervisory Board taken on March 18, 2015. It was then decided to privatize IBA, with a thorough rehabilitation preceding, by the Decree of the President of the Republic of Azerbaijan, dated July 15, 2015, on “The measures for rehabilitation related to the preparations for privatizing the state-owned shares of the International Bank of Azerbaijan OJSC”. It should be noted that in the early 2000s, international financial institutions and local experts considered privatization as the only way to avoid a series of negative consequences foretold after a close observation of the bank’s operations…
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