IMF and WB to Begin Second Assessment of Azerbaijan’s Financial Sector no Earlier than 2009

Business Materials 29 February 2008 17:47 (UTC +04:00)

Azerbaijan, Baku, 29 February /corr. Trend I.Khalilova / The second stage of assessment of the financial sector of Azerbaijan, with the technical assistance program (FSAP) of the International Monetary Fund and World Bank, may begin no earlier than the end of 2008 and beginning of 2009, a source stated in WB Baku Office, on 29 February.

For this, the Government of Azerbaijan should officially appeal to these financial institutions in the near months. The issue of holding the second assessment of FSAP was discussed during the recent visit of the bank's mission to Baku with regards to the financial sector modernization project.

In April 2007, the IFC experts arrived in Azerbaijan for inspecting the results of the first assessment which was held in 2003.

They highly assessed the measures taken in Azerbaijan, including independence of the NBA, the Deputy Chairman of the Board of the National Bank of Azerbaijan, Rufat Aslanli, said earlier.

At the end of the last year, the Parliament of Azerbaijan made changes to the Law 'On National Bank of Azerbaijan'.

After the assessment of FSAP held jointly by IFC and the WB in 2003, new laws were adopted in Azerbaijan "On banks" and "On National Bank of Azerbaijan", and therefore, the results of the assessment lost their importance. In addition, considering the recommendations of the experts, works are carried out. Aslanli said that currently the operation independence of the NBA is on agenda. Considering the growth of Azerbaijan's profits and macroeconomic situation, this issue assumes great importance.

Aslanli considers that adopting laws in Azerbaijan "On banks" and "On National Bank of Azerbaijan" resolved the issue included in FSAP assessment in the first round. Within the assessment of Azerbaijan's financial sector, the WB and IMF specialists held stress-tests which determined high capacity of Country's banking system. They stated that even in 50-70% worsening of the indicators, the bank's assets will exceed its obligations.

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