World Bank Stands Ready to Support Development of Non-State Pension System in Azerbaijan

Business Materials 8 October 2007 21:04 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / The World Bank's Country Manager for Azerbaijan, Gregory T. Jedrzejczak, said on 8 October that the WB suggests financing to the Government of Azerbaijan for continuing reforms in the pension system of the Country.

"The development of the non-State pension system will be the new element to the pension project realized in Azerbaijan," Jedrzejczak said. According to him, currently talks are being held with the Finance Ministry of Azerbaijan regarding the further reforms in the pension system which may meet the real situation in the Country.

The budget of the new project has not been confirmed because its necessity is still being specified with the Government.

Of the gross cost of the project in amount of $15.8mln, some $10mln has been allocated within the credit on supporting pension and social reforms in Azerbaijan. The project comprises three components.

The credit agreement on the project was signed between the Government of Azerbaijan and the World Bank on 23 September 2004 and entered into force on 11 November 2004. The WB allocated $10mln to Azerbaijan within the project over the period of 35 years with ten year period of grace and interest rate of 0.75% per year. The credit was approved by the WB Board of Directors on 10 June 2004.