WB Postpones Talks on Financial Project in Azerbaijan

Business Materials 14 April 2008 19:57 (UTC +04:00)

Azerbaijan, Baku, 14 April / Trend corr I. Khalilova/ The Word Bank (WB) postponed the date of official talks with the Government of Azerbaijan regarding the project on technical assistance to upgrading the financial sector of Azerbaijan, a source stated at WB Baku Office on 14 April.

Earlier the talks were scheduled for 15-16 April. The talks were postponed due to lack of time. However, the project 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) to implement the project.

The final cost of the project will be defined after the re-estimation of each of the components.

The project is intended to prevent systematic risks emerging from intensified development of Azerbaijan's financial sector through the 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:

- improve regulatory and oversight system at the market to increase access of companies to the local market;

- improve protection of financial service consumer rights;

- improve access and transparency of the fiscal data of the National Bank of Azerbaijan though internet;

- update the centralized credit registration at the credit office, provision of on-line operation of the registration system;

- the 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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