Oil Workers’ Rights Protection Organization
 

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This day: 18 April 2014, Friday
Which foreign banks has Azerbaijan capital been trusted in?
Which foreign banks has Azerbaijan capital been trusted in?
Rovshan Abdullayev, 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 being divercificated.

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.

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