Lausanne (Switzerland): The International Boxing Association (AIBA) has paid in full its outstanding USD $10 million debt to Azerbaijani company Benkons LLC, which was the main loan for the organization and which had been at the heart of a period of financial instability.
The loan had been part of an unsuccessful venture, the World Series of Boxing.
The settlement of the loan marks the fulfillment of an election promise by AIBA President Umar Kremlev to return the International Federation to financial stability. It is accompanied by a $7 million round of development funding which will see grants issued to National Federations (NFs) and regional Confederations.
“Financial issues have hung over the leadership of the sport I love for too many years. They have even threatened our Olympic future” said President Kremlev.
“Closing the debt is a core achievement for our financial health and future Olympic prospects. I am very happy that we have been able to resolve this and ensure stability for AIBA. Boxing is a sport with a rich history, a strong present and an ambitious future. It deserves effective leadership.”
During the tenure of former President Ching-Kuo Wu, AIBA became guarantor to the loan of $10 million USD provided by Benkons. The resulting debt was identified by the IOC as a key reason for suspending payments to AIBA in 2017 and later the complete suspension of AIBA. AIBA hopes its settlement and the resulting stability will now prove to be a significant step towards resolving the IOC’s concerns.
