World Bank, Azerbaijan Sign Loan Agreement on CAP/SAP Project

Business Materials 26 September 2008 17:34 (UTC +04:00)

Azerbaijan, Baku, 26 September/ Trend , corr I. Khalilova/ The Azerbaijani government and World Bank have signed a large agreement to improve accounting in cooperative and state sector (CAP/SAP) worth $24mln.

The project will be financed due to WB loan worth $11mln, grant of Japanese PHRD fund ($3mln), State Secretary of Switzerland for Economic Affairs (Seco) ($2mln) and share of Azerbaijani government ($8mln). A grant agreement was signed today with Japanese fund. The agreement with Seco will be signed after Seco complots internal procedures.

CAP/SAP project has been approved by the Executive Board of WB on 27 March 2008. The key goal of CAP/SAP is to introduce respective national standards meeting international financial reporting standards (IFRS).

Nearly $6mln is expected to be spent for introduction of IFRS in the commercial sector, $10mln - IPSAS (International Public Sector Accounting Standards), Public Internal Finance Control and improving foreign audit in state sector and $9mln to improve system of accounting and audit management. Finance of State Secretary of Switzerland will be spent to improve internal finance control on the management of state revenues (state budget and state-owned companies). Consulting services is meant to support Counting Chamber to become independent institute of high audit.

Azerbaijan has worked out 28 national standards for commercial sector. There are 35 standards of financial reporting and audit. Shift to IFRS has begun from 1 January 2008 for state sector.

The correspondent can be contacted at: [email protected]