Related parties include shareholders, members of boards of management, other employees and companies in which the Banks investment is in excess of ten percent of the shares.

At 31 December 1997, the Bank had AZM 8,000 of loans outstanding to related parties, all of which were made under arms - length conditions.

The Bank has concluded a rent agreement with a shareholder for its office building which calls for rent to be paid at an amount substantially below prevailing market rates in Baku. The agreement was executed during 1997 and is without a fixed term.