Which foreign banks has Azerbaijan
capital been trusted in?
Which foreign banks has Azerbaijan
capital been trusted in?
The Expert of Oil Worker’s
Rights Protection Organisation
According to the last report of
State Oil Fund of Azerbaijan Republic there is nearly $ 2 billlion 700 million
investment in this financial balance .At present ,the investments of the
fund are located in loans,credit assets,deposits & in capital market
implements.The 55% of the actives of Oil State Fund is invested by USA
dollar,35 % by euro,5 % by pound sterling,and the rest 5 % by other currency
The World’s leading and prestigious banks act as supporters in financial operations of the Oil Fund.To say simply,the oil capital of Azerbaijan is kept in foreign banks.And what are these banks,are they reliable ,in general,what are their advantages & disadvantages?This question appears after the confict that has occured with one of these banks recently. This is about Societe Generale bank of France.The employee of the bank by name Jerom Kervel’s finacial frauds have costed the bank about
$4.82 billion.They say,Kervel was making confidential operations with futurers in indexes of European Exchange .He was implementing the operations which were much higher than bank capital .The inclination to get promotion from management and to receive financial grant tempted him to be involved in unpleasant operation.At present Kervel is under the investigation.But his harm to the bank and to its business reputation is immeasurable. Now investigators and financial experts try to find out how the average bank employee could confidentially sell the capital amounting to billions of dollars by auction during 4 years.
It should be mentioned that there is a branch of Societe Generale in Baku. The chief of the representation of Societe General in Baku Teyba Quliyeva stated that the recent conclict hasn’t impacted negatively either the activity of the bank or its relation with State Oil Fund of Azerbaijan.
The other bank where oil capital of Azerbaijan is kept is HSBC which its headquarters is located in London. One of the prestigious banks of Britain & the world HSBC had to complete the previous year with the loss of more than $17 billion.The main reason for this is the reverberation of mortgage crisis that has taken place in America.The fact is that in the 70-80s millions of average Americans could not borrow mortgage credits,but in the 90s ( in the times of Clinton’s successful economical policy) people could borrow mortgage credits after sudden salary elevation. But at the beginning of 2000 some signs of decline began to be noticed in the economy of America.These signs led to recession and thereafter to crisis.In consequence, the citizens who took the mortgage credits from the banks (also form HSBC) lost their opportunity to repay in time. The number of this people is great.This resulted in the loss of $17 billion. But HSBC still preserves its prestige in world bank market. The bank’s annual income is $24.2 billion. Inspite of being faced with financial crisis the bank is expanding its operations rapidly in Asia and Europa.
The bank began its activity in Azerbaijan since the 90s. But complaining of the slow development of bank market, it closed down its Baku branch after some time.
It’s reported that at present the bank dividends that are paid to its sharefolders have been increased 11%.This is much better result than the analogical indicator of another reputable banks.The financial analysts state that HSBC can evade this situation under the global economical recessment circumstance.Now the bank tries its best to mitigate the impact of economical crisis of mortgage credit. Having reconstructed its operations HSBC had to close down its 400 branches in the USA.Besides it all bank has reduced the volume of the given credits.
The another financial institution that is involved in managment of oil capital of Azerbaijan is Credi Suisse Bank of Switzerland.One of the most prestigious and venerable banks of the world Credi Suisse meets some difficulties at present. Credi Suisse Bank also had some problems like Societe Generale Bank of France.It is reported that due to the trades’ errors the bank had to complete the previous year with the loss of $ 2.8 billion.The Executor Director of the bank confessed that the trades of the banks made mistakes while estimating the value of mortgage credits.That is,the real prices of the projects that the bank has assumed to finance were estimated very highly.As a result, a group of managers were dismissed.It’s natural that the profit of the bank has decreased by $ 1 billion.
The main feature of the activity of the bank is that the bank keeps its secrets and customer account secret.It reminds the confrontation between the bank and authoritative jewish organisations.This confrontation dates back to the 2nd World War.It’s claimed that in the 40s the germans had confiscated a large amount of finance and jewels from the captives of jewish origion.Thereafter this capital was invested to Switzerland banks including Credi Suisse.But naturally the possessors of these accounts are either germans or the third person that they have found.During last decades the reputable jewish organisations of Europa and America conduct campaigns to return this capital to its real owners and the members of their family.These campaigns were supported in some countries.But Credi Suisse and other banks just said ‘no’.The chief of the bank Jerom Drammen stated that it even musn’t be mentioned that the bank should return the capital to jewish. The bank experts say that the owner of the account is not the person who earned and invested the capital ,but the one who has opened this account.So probably this capital really belongs to jewish.But the ones who invested money to the bank weren’t jewish.That’s why only the person who opens the account can draw money from there.That’s all.
We’d like to give brief information about other two banks which are involved in management of the actives of State Oil Fund of Azerbaijan .One of them is Dresdner Bank Group of Germany.Being formed in Dresden,Germany in 1872 this bank is one of the three important banks of Germany.The chief office of the bank is situated in Frankfurt-Mayn which is the major business center of Germany.It has moreover thousand branches in Germany and abroad as well.The rest of oil capital of Azerbaijan has been invested at Barclays Group Bank.This bank has 27 million customers in more than 50 countries.The bank has 134 thounsand employees.In 2007 the bank paid its customers the dividends more than 7 billion pound sterling.