Azerbaijan familiarizes with best practice for successful transformation of microfinance organizations into bank
Azerbaijan, Baku, Oct. 27 / Trend/
The International Financial Corporation (IFC), entering into the World Bank (WB) Group, together with the Financial Commission on Regulation of Mongolia and Micro-Finance Development Fund (MFDF) has organized awareness-raising tour to Mongolia on studying of legislative practice on microfinancing for regulators from Azerbaijan, Bosnia and Herzegovina, Kazakhstan, Kyrgyzstan and Tajikistan. The delegation from Azerbaijan was represented by employees of the Cabinet of Ministers, the Central Bank of Azerbaijan (CBA) and the Association of Microfinancial Organizations, the IFC Baku office reported.
"The IFC helps to improve the legislative and institutional environment for development of microfinancing in Europe and Central Asia that will enable increasing access to financing for microbusinessmen and population," the office reported.
During the tour held on Oct.12-14, regulators familiarized themselves with the best international approaches that would enable them to approach with more awareness to development regulatory base of microfinancing in the countries. The tour was organized by project IFC on backing of transformation of microfinancial institutions in Azerbaijan and Central Asia, supported by the DutchForeign Ministry.
"Mongolia can be a fine example for successful demonstration to representatives of the governments and the central banks how their countries having similar prerequisites, can receive advantage from developed microfinancial sector, as well to see, how microfinancial institutions can expand spectrum of services for their clients by means of innovations and successful transformation," said Cholpon Kokumova, project manager of IFC on support of transformation of microfinancial institutions in Azerbaijan and Central Asia.
The participants got familiarized with examples of successful transformation of the microfinancial organization in bank, the best practices and innovations in microfinancial sector, as well as met with official persons in Mongolia. In addition, they among the first familiarized themselves with results of research " Comparative analysis of legislative environment in some countries," initiated by IFC.
The report reflects an analysis of regulatory base of some countries and to what degree regulatory basis in Azerbaijan and the Central Asia promotes transformation of microfinancial organizations in microfinancial banks. The report has supplemented the information, received during the awareness-raising tour and will promote construction of dialogue and evolution of legislation in Central Asia and Azerbaijan.
"The workshop was organized very well and many topics of microfinancing were covered. anking," said Ayaz Chaparli, a specialist of administration on control over activity of non-bank organizations of the Central Bank of Azerbaijan (CBA).
A well-developed microfinance sector is an important engine for private sector growth and poverty reduction. Yet more than 3 billion people in developing countries have little or no access to financial services. IFC works to improve the livelihoods of people living in emerging markets by expanding financial inclusion and increasing access to finance for the poor.
The IFC is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010.