Azerbaijan, Baku / Trend corr. I.Khalilova / The World Bank has agreed to offer assistance to the National Bank of Azerbaijan (NBA) within the framework of the new Modernization of Azerbaijani financial system project in three directions, NBA reported.
The first direction stipulates the improvement of access to long-term credit resources of agricultural production manufacturers with use of up-to-day experience.
The second direction envisages the improvement of the Centralized Credit Register's operation established at NBA. NBA's experts consider it logical to hold wide expertise and further development of the Centralized Credit Register within the framework of the project.
The third direction was proposed by WB which is to create the centralized database in NBA. "An increase of access to financial information is very important therefore it is necessary for such a base with statistic data to provide public, government and academic structures with necessary information," NBA reported.
The latest visit of WB Mission headed by the senior specialist in the financial sector, Michel Eduard, was implemented in October. However, negotiations concerning the project had not been completed. The project will play an important role in the development of the financial sector in Azerbaijan.
The project covers all main directions in financial system of the country, including the banking sector, insurance, non-governmental pension funds, as well as the securities market.
WB is ready to support the project both from a financial point of view and to offer technical assistance.
The financial issues of the project have not been assessed as yet. The cost of the project will be set only after the assessment has been made. According to a pre-arranged data, it will be the last credits allocated by the International Development Association envisaged for support of the financial sector of the country.
WB allocated $5.4mln credits in order to develop the financial sector and $12mln for financial services in Azerbaijan.
NBA is launching negotiations with international organizations to draw financial support for future improvement of the Centralized credit register acting at NBA.
Within the framework of the development of the financial sector in Azerbaijan, WB initiates to implement the second direction of development of the credit register in the project. NBA, in cooperation with the United States Agency on International Development also proposed to implement the direction. The Agency has already financed the visit of a consultant to carry out diagnostic supervision on additional ways to develop the credit register.
The Centralized Credit Register was established within the framework of the WB Technical Assistance to Financial Sector of Azerbaijan in March 2005. The Credit register is one of the instruments in the management of credit risks of banks.