AKIPRESS.COM - Kazakhstan, which holds $250 million worth of debt owed by state-run Azeri lender International Bank of Azerbaijan (IBA), will be treated on par with other senior creditors of the bank, a person familiar with the debt restructuring process told Reuterson June 13.
Kazakhstan's central bank acquired 10-year bonds issued by the International Bank of Azerbaijan via private placement for its pension fund in 2014.
But IBA's plan to restructure $3.3 billion of debt, including the chunk held by Kazakhstan, has sparked anger and led Kazakh authorities to launch an investigation into the purchase.
"Negotiations with the central bank pension fund started in May. But they will be in the plan and they will be treated as all other senior creditors ... no special treatment," the source said. "There will be no change to the universe of creditors or the size of the debt stock to be restructured."