Seco to Finance WB’s Project on Upgrading of Azerbaijan’s Financial Sector
Azerbaijan, Baku, 29 March / Trend corr I. Khalilova/ The Word Bank (WB) announced the results of assessment of the project on technical assistance to upgrading of the financial sector of Azerbaijan, which is expected to be approved at the WB Board of Directors on 17 June. WB is ready to allot $11mln though the International Development Association (for 35 years, 0.75% interest rate) for implementation of the project.
The final cost of the project will be defined after the re-estimation of each of the components, which is planned for 15 April.
The project is intended for prevention of systematic risks emerging from intensified development of Azerbaijan's financial sector through improvement of control, improvement of access and transparency of key financial transactions.
The work within the framework of the project will maintain continuous development of the financial sector through reforms in five key fields:
- improvement of regulatory and oversight system at the market to increase access of companies to local market;
- improvement of protection of financial service consumer rights;
- improvement of access and transparency of the fiscal data of the National Bank of Azerbaijan though internet;
- updating of the centralized credit registration at the credit office, provision of on-line operation of the registration system;
- provision of bank and non-bank creditors with educational programs for work with agricultural manufacturers.
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.
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