RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF AZERBAIJAN

 

on the establishment of Competition Commission for the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company and giving them to the management of external managers

 

According to the clause 5.2 of the Decree of the President of Azerbaijan Republic dated July 15, 2015 No. 570 “On rehabilitation measures related to the preparation of state – owned shares of “International Bank of Azerbaijan” Open Joint Stock Company for the privatization”, to ensure the transparency in the process of the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets given to the control of  “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company and giving them to the management of external managers, the Cabinet of Ministers of the Republic of Azerbaijan decides:

1. The Competition Commission shall be established in the following composition to adopt a decision on the sale of movable and immovable properties (hereinafter referred to as – properties) acquired in return of troubled assets (debts) purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization (hereinafter “Aqrarkredit” CJSC) from “International Bank of Azerbaijan” Open Joint Stock Company (hereinafter – “International Bank of Azerbaijan” OJSC) and giving them to the management of external managers:

Chairman of Commission

Azer Bayramov

-

Deputy Minister of the Finance of the Republic of Azerbaijan

Members of Commission:

Bayram Rzayev

-

Deputy Head of Housing – Utilities Department of the Ministry of Economy of the Republic of Azerbaijan

Mehman Safarov

-

Deputy Head of Finance and Accounting Department of the Ministry of Agriculture of the Republic of Azerbaijan; head of internal audit sector 

Tehran Mehdiyev

-

Senior adviser at Department of Privatization and Leasing of State Property of State Committee on Property Issues of the Republic of Azerbaijan

Jahangir Karimov

-

Deputy Chairman of the Management Board of “Aqrarkredit” CJSC

 2. “Procedure for the activity of the Competition Commission established for the sale of properties acquired and documented in accordance with the existing legislation in return of troubled assets by “Aqrarkredit” CJSC from “International Bank of Azerbaijan” OJSC and giving them to the management of external managers” shall be approved (attached).

3. It shall be assigned to the Competition Commission to:

3.1. on the basis of the reasonable suggestions of “Aqrarkredit” CJSC:

3.1.1. adopt  a decision on the sale or giving properties to the external managers;

3.1.2. taking into consideration the opinion of the selected prominent and independent assessor for each property adopted for its sale, adopt a relevant decision about initial sales price;

3.1.3. the selection of specialized organizations shall be ensured for the purposes of sale of property in open auctions;

3.1.4. methods (on the basis of direct contract or through competition), terms and conditions, requirements and term of giving properties to the management or control of external managers;

3.1.5. depending on the type and complexity of properties, make a decision on the involvement of hired external adviser in the sale or giving properties to external managers.

3.2. review information from “Aqrarkredit” CJSC related to the condition of sale of properties which are the subject of mortgage (collateral) and to which debt obligation is directed and make suggestions;

3.3. arrange its activity in accordance with the procedure for the activity approved by the part of 2 of this decision and if necessary, adopt regulations and other regulatory decisions on its activity;

4. It shall be assigned to “Aqrarkredit” CJSC to:

4.1. conduct preparatory works for the purposes of sale and giving the properties to the management of external managers, take measures related to the involvement of independent assessor, expert and external adviser for the valuation and sale of that property depending on the type and complexity of property;

4.2. submit information required for the sale of each property, as well as, other reasonable indicators on the composition, condition, technical parameters of the property and formation of initial sales price to the Competition Commission;

4.3. regularly inform the Competition Commission related to the condition of the sale of properties which are the subject of mortgage (collateral) and to which debt obligation is directed;

4.4. ensure the preparation of prescriptive documents required in accordance with the legislation during the sale of properties and giving them to the management of external managers, if necessary, involve external legal advisers for this purpose;

4.5. Arrange to convene and hold the meetings of the Competition Commission and fulfill the secretariat functions on the documentation of the results of meetings.

5. It shall be assigned to the Competition Commission and “Aqrarkredit” CJSC to resolve these issues arising from this decision and submit a report to the Cabinet of Ministers of the Republic of Azerbaijan on the works done once a year.

 

Prime Minister of the Republic of Azerbaijan, Artur Rasi-zadə

 

Baku, June 22,  2016

                  № 252

 

 

Approved by the Resolution of

the Cabinet of Ministers of the Republic of

Azerbaijan dated June 22, 2016 No. 252.

 

 

 

PROCEDURE

 

 for the activity of the Competition Commission established for the sale of properties acquired and documented in accordance with the existing legislation in return of  troubled assets purchased by “Aqrarkredit” Closed Joint Stock Company Non – banking Credit Organization from “International Bank of Azerbaijan” Open Joint Stock Company and giving them to the management of external managers

 1. General provisions

1.1. This Procedure defines the rules for the activity of the Competition Commission established for the purpose of regulation of a number of issues in the process of the sale of movable and immovable properties (hereinafter – properties) acquired and documented in accordance with the existing legislation in return of  overdue debts on the troubled assets given to the management of “Aqrarkredit” CJSC and giving them to the control of external managers related to the fulfillment of duties arising out of the Decree of the President of the Republic of Azerbaijan dated July 15, 2015 No. 570 “On rehabilitation measures related to the preparation of state – owned shares of “International Bank of Azerbaijan” Open Joint Stock Company for the privatization”.

1.2. The Competition Commission shall be guided by the Constitution and laws of the Republic of Azerbaijan, decrees and orders of the President of the Republic of Azerbaijan, the   resolution and orders of the Cabinet of Ministers of the Republic of Azerbaijan and this Procedure in its activity.

1.3. The arrangement of clerical works, economic works and other works related to the activity of the Competition Commission shall be implemented by “Aqrarkredit” CJSC.

 2. Procedure for the activity of the Competition Commission

 2.1. The composition of the Competition Commission is approved by the Cabinet of Ministers of the Republic of Azerbaijan.

2.2. The number of members of the Competition Commission is 5 persons. The members of Commission acts on a public basis (without paying for them).

2.3. The Competition Commission shall adopt decisions discussing the relevant suggestions and the following documents attached to it related to the sale of properties and giving them to the external managers prepared by “Aqrarkredit” CJSC:

2.3.1. the reasonable suggestion on the initial sales price of the properties and the opinion of an independent assessor about it;

2.3.2. reasonable suggestion and draft resolution on the methods (on the basis of direct contract or through competition), terms and conditions, requirements and term of giving properties to the management or control of external managers and the selection of specialized organizations for the purpose of sale of properties in open auctions;

2.3.3. draft resolution on the involvement of hired external adviser in the sale or giving properties to external managers depending on the type and complexity of properties;

2.3.4. information required for the sale of each property, as well as, other reasonable indicators on the list of the property composition, condition, technical parameters of the property and formation of initial sales price;

2.3.5. reasonable suggestion and draft resolution on the sale of property or giving it to the control by adding the document approving the obtaining of each property.

2.4. The agenda and the sequence of meetings of Competition Commission shall be developed by “Aqrarkredit” CJSC and agreed with the Chairman of the Commission.

2.5. Competition Commission shall make relevant decisions at the meetings held considering the issues mentioned in the clause 2.3 of this Procedure within 10 (ten) working days after the submission of information to the Commission members.

2.6. If at least 4 (four) members among the members of Competition Commission take part in the meeting, Commission shall be entitled to adopt a decision. The decisions of the Commission are adopted through an open voting and by a simple majority of the participants. If votes are equal, the vote of the Chairman of Competition Commission shall be decisive.

2.7. The decision of Competition Commission shall be signed by all Commission members taking part in the meeting. The Commission members not agreeing with the decision adds his/ her special opinion to the decision noting it in front of his/ her signature.

2.8. The meetings of Competition Commission shall be documented and signed by Chairman and Secretary in relevant manner.

2.9. The Chairman of Competition Commission:

2.9.1. arranges and supervises the activity of Competition Commission;

2.9.2. chairs the meetings of Competition Commission;

2.9.3. signs the minutes of the meetings of Competition Commission, regulations adopted by Commission and other regulatory decisions.

Competition Commission submits a report to the Cabinet of Ministers of the Republic of Azerbaijan about its activity once a year.

 3. Final provisions

3.1. Competition Commission shall be dissolved by the decision of the Cabinet of Ministers of the Republic of Azerbaijan.

3.2. Documents in the disposition of Competition Commission related to its activity shall be delivered to the state archive in the manner specified by the legislation after its dissolution.

 

 

 

28.11.2016 Detailed Gizlət