WB, Azerbaijan begin official negotiations on capital market development project
Azerbaijan, Baku, Feb. 10 /Trend, N.Ismayilova/
The World Bank (WB) has begun official negotiations with the Azerbaijani government on the capital market development project in the country, WB Office in Baku said on Thursday.
"The negotiations are conducted via videoconference in cooperation with the State Securities Committee, the Ministry of Finance, Ministry of Economic Development and Ministry of Justice of the country," the Office said.
The WB mission headed by WB Financial Program head and Financial Issues Coordinator in the South Caucasus Michael Edwards was expected to visit Baku to participate in the talks, but as he could not come, it was decided not to postpone the negotiation process and conduct it through the videoconference.
The talks will continue by the end of week. According to the expectations of the Bank, in April, the project will be submitted for approval by the WB Board of Directors.
The WB is reviewing the possibility of allocating $5-$10 million for capital market development in Azerbaijan, the bank's Baku Office said earlier. A favorable loan may be allocated from the quotas of the International Development Association, including the WB, to Azerbaijan for the 2011 fiscal year. The amount has been determined as $73 million. The Swiss State Secretariat for Economic Affairs will also finance one project component. SECO plans to provide technical assistance in the amount of $1.7 million to strengthen the capacity of capital market players.
Rufat Aslanli, the chairman of the State Securities Committee, said that this project will focus on improving the legislative base at the next stage, market infrastructure, and completing the process of automating the trading securities process within a single platform. The measures will be taken to stimulate demand and supply on the market.