Russia's Sberbank Settles Debt Dispute With Azeri Bank IBA

Sberbank and the International Bank of Azerbaijan (IBA) have settled a dispute over funds owed to Russia’s largest bank by IBA, an Azeri and Sberbank officials said on Wednesday, Reuters reported. In 2017, state-run IBA proposed a plan to restructure $3.3 billion of its debt and said in July it had received approval from creditors holding 93.9% of the debt involved. As part of the restructuring, which was under Azeri law, IBA obtained a moratorium from a London court preventing creditors from taking action against it without court permission. Sberbank, the sole lender of a $20 million facility to IBA, did not agree to the restructuring and argued its dealing with IBA was governed by English law. A British court of appeal backed Sberbank in December 2018. The parties reached an agreement on June 14, 2019, Ibrahim Alishov, head of Azerbaijan’s Chamber for supervision of financial markets, told Reuters. Read more