Volume of WB Credit for Azerbaijan’s CAPSAP Project Decreased
Azerbaijan, Baku, 22 January / Trend corr. I.Khalilova / The Azerbaijani Government is prepared to draw the World Bank accounting project in a corporative and state sector of Azerbaijan (CAPSAP) in the amount of $5-10mln.
The Finance Ministry achieved the reduction of expenditures on the consultative services during the negotiations, on which 70% of the WB credits have been allocated. As a result the total cost of the project was reduced to $11mln instead of the sum stated by the bank of $30-40mln. The Bank envisaged the privileged credits in the amount of $20mln for reforms in the accounting sphere.
In this respect the Finance Ministry of Azerbaijan, which is the beneficiary of the project, was recommended to reconsider the components jointly with experts from the bank. The delays in the development of the project held back the adoption of the project at the Board of Directors of the bank in 2008, whereas there was a possibility to approve it in October
The project is comprised of three components. Within the first segment there are plans to reform the accounting in the corporative sector, including the application of the International Accounting Standards in the organizations of public importance, assistance in the development and adoption of the new law on audit and the development and reformation of the Auditor Chamber.
The second component envisages restructuring the accounting system in the state sector.
The third segment stipulates the creation of a Centre of Research, Education and Professional Accounting Training in Azerbaijan, transiting to the International Accounting Standards, devising national accounting standards and auditors and supporting special programs to conduct the training.
To intensify the implementation of the project the Government is interested in establishing a schedule on the application of the International Accounting Standards. In accordance with the new law on book-keeping, by the end of 2007 the application of national accountancy standards at commercial organizations will be complete. The budget and non-governmental organization should conclude this process by the end of 2008.