The Deputies of the Senate of the Parliament of the Republic of Kazakhstan once again reminded the Minister of Finance Bakhyt Sultanov about the funds of the Unified Accumulative Pension Fund invested in the International Bank of Azerbaijan.                                                                                            

“What is the situation with the money of the pension fund invested in the Azerbaijani economy? We can probably call it investment,” - Deputy Darkhan Kaletayev asked the Minister of Finance, who spoke at the plenary session of the Senate.

“There were investments from the Unified Accumulative Pension Fund in the bonds of the Azerbaijani bank. As a result of certain difficulties, this bank underwent restructuring procedures. The Government of Azerbaijan has also joined this process. As a result of negotiations, an agreement was reached on the exchange of these bonds for sovereign bonds, the term was extended to 15 years. That is, the rate was lowered as a result of restructuring. But, nevertheless, the main debt and plus the yield on these rates, albeit at a reduced rate, are secured. Therefore, the return of this money is absolutely guaranteed as of today. In addition, as a result of the acquisition of these bonds, a certain part was already received by the UAPF in the form of revenues,” – the Minister said.

The International Bank of Azerbaijan, in which the Unified Accumulative Pension Fund of Kazakhstan invested 71.3 billion tenge of assets, filed a bankruptcy petition. The financial institution stopped paying its external debt and is preparing to negotiate with creditors about the restructuring. Financial problems arose due to fluctuations in oil prices and the devaluation of the national currency of Azerbaijan. Through bankruptcy, the bank's management hopes to avoid claims from creditors.


Published: 15 February 2018


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