World Bank Prepared to Sign Agreement on CAP/SAP Without Swiss Grant

Business Materials 13 September 2008 12:31 (UTC +04:00)

Azerbaijan, Baku, 13 September/ Trend , I. Khalilova/ World Bank is prepared to sign loan agreement with Azerbaijan on the project of improving bookkeeping in corporate and government sector (CAP/SAP) not waiting for decision of State Secretary for Economic Affairs (Seco) of Switzerland to render technical assistance, a source in WB Baku office said.

Seco is expected to grant 2mln Swiss franks (about $1.9mln) to increase the potential of Accounting Chamber of Azerbaijan.

"At present, Seco still conducts internal procedures to coordinate grant for the project," a source said.

The measures on increasing potential of Accounting Chamber will be taken within CAP/SAP project to introduce national standards conforming to International Financial Reporting Standards (IFRS) and were approved by the Executive Board of WB on 27 March 2008. However, the bank and the government did not make contribution to this component and asked it from Seco.

Consultation services aim at supporting Accounting Chamber in becoming an independent institute of high-level audit. Besides, technical assistance will help improve domestic financial control on management of government income (state budget and governmental agencies).

CAP/SAP project is evaluated at $24mln to $25mln, $11mkn of which accounts for WB loan in line with International Development Association. Some $3mln will be granted by the Japanese grant fund PHRD and remaining part - by Azerbaijani government. Minister of Finance Samir Shariov has already been provided with authorities to sing loan and grant agreement. The agreements are expected to be signed in the course of September.

Azerbaijan has already worked out 28 national standards for business sector. There are 35 standards of financial and audit reporting all over the world. Shift to IFRS has been launched in the country since 1 January 2008 for the state-owned sector.

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