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Azeri Bank Plans $3.3 Billion Restructuring After Defaulting

  • International Bank of Azerbaijan bond yields jump on statement
  • Sovereign obligations to be swapped for some of bank’s FX debt
ATMs of the International bank of Azerbaijan in Baku.
Photographer: MURAD ORUJOV/Sputnik via AP Photo
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The largest bank in Azerbaijan has halted its foreign debt payments and will start restructuring talks with creditors after a currency crisis in the Caspian Sea nation drove the lender to the brink of collapse.

Under a restructuring plan published on Friday, the International Bank of Azerbaijan said its “designated financial indebtedness” was at $3.3 billion as of April 18. It missed a principal and interest payment on a $100 million subordinated loan on May 10, according to an emailed statement from the government-owned lender on Thursday.