Azerbaijan, Baku, 23 April / Trend corr. I.Khalilova / The Asian Bank of Development (ABD) has begun consultations with the State-run Social Protection Fund of Azerbaijan to provide technical assistance in amount of $1mln to manage the accumulative funds, ABD Baku representative reported. For this purpose Ramesh Subramaniam, Head of the Financial Division, will visit Baku.
These measures are envisaged only within the framework of the third stage of the pension system reform. An accumulative pension system is planned as a result of the reforms. The conceptual scheme will be developed at the expense of grant funds and State Funds. Furthermore, ABD attracts technical aid from the US Trade and Development Agency (USTDA) to develop the optimal accumulative mode system. The system may be created by 2012.
The agreement to implement the project at a cost of $1.114mln was concluded with USTDA. Some $600,000 will fall on the Agency and the other balance will be covered by funds allocated by the State budget for 2008.
The project is directed to assist the creation of an accumulative financing system, to collect insurance funds from workers and its managers. Furthermore, schemes will be suggested to allocate funds in the financial market and the selection of managing companies.
Within the framework of the project an accumulation system for managing the funds and currency structure of accumulative portfolio will be created.
The official rate at 23 April is 0,8276 AZN/USD.
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