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WB to Devise Assessment Document on Third Project in Azerbaijan’s Financial Sector

Business Materials 1 March 2008 11:23 (UTC +04:00)

Azerbaijan, Baku, 1 March /corr. Trend I.Khalilova / In the next two weeks, the World Bank (WB) will devise a report on assessment of the project on Modernization of Azerbaijani Financial System. It will enable to hold official talks with the Government of Azerbaijan regarding credit agreement in mid April, a source at WB Baku Office said on 29 February.

In mid February, the World Bank's chief specialist for the financial sector, Michel Edwards, arrived in Azerbaijan to assess the new project on Modernization of Azerbaijani Financial System and also to specify its components. At that time, for the first time, the amount of the credit was highlighted, which the bank intends to provide to the Country in amount of $8-10mln in accordance with the conditions of the International Development Association (IDA) (for a period of 35 years with extension on debt repayment at 10 years and 0.75% interest year annually).

The project includes four components - protection of rights of consumers of financial services in the sphere of insurance, development of the banking infrastructure and capital markets.

The component in line with the National Bank of Azerbaijan includes several measures: transferring Centralized Credit Registry of the NBA to more advanced technologies, establishing centralized database in the NBA, improving financing mechanism of rural areas.

It will be the third WB and last preferential credit for the financial sector of Azerbaijan. The WB allocated a $5.4mln for the Financial Sector Technical Assistance (FSTA) and $12mln - for the Development of Financial Services.

The correspondent can be contacted at: [email protected]

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