The restructuring of Azerbaijan’s largest bank has highlighted a major issue for the country’s economy: an overreliance on its oil reserves and the need to diversify the state’s revenue sources.
The default by state-owned International Bank of Azerbaijan (IBA) on its $3.3bn of debt, and the bank’s subsequent restructuring, followed sustained low oil prices that sent the country's economy and currency, the manat, reeling. But the ordeal surrounding IBA is far from over for the country’s financial sector.