USAID Stands Ready to Assist in Recovery of State Enterprises in Azerbaijan

Business Materials 13 February 2008 15:32 (UTC +04:00)

Azerbaijan, Baku, 13 February /corr. Trend I.Khalilova / The US Agency for International Development (USAID) once again suggested assisting Azerbaijan in developing a communal economy, said the USAID consultant Hafso Bahatti at a meeting with heads of privatized enterprises on 12 February. In several countries, these economies are owned by municipalities. [In 2005 the USAID already financed a pilot project on technical assistance in the energy sector of Azerbaijan].

Improving the communal economy will positively affect the activities of already privatized enterprises and enterprises that are under the privatization process.

The USAID consultant considers it necessary to carry out complex measures for recovery of State enterprises which should ensure production of competitive products and expansion of their market.

The USAID representative expressed his readiness to assist in organizing conferences and seminars on pre-privatization recovery and re-structuring of State enterprises. The agency may attract foreign banks and investors who demonstrate an interest in this process.

"It is very important from the point of view of transparency. Generally the interest in participating in the privatization process may depend on the true choice of the tax and tariff policy, and research is needed," Bahatti said.

According to him, along with budget and donor organizations, it is possible to attract local micro-finance organizations in the pre-privatization development process. Such experience exists in India and China where the development of enterprises have been ensured from subsidies and financial assistance of internal sources.

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