Azerbaijan, China to establish mechanism to guarantee companies investment risks

Business Materials 12 July 2011 11:19 (UTC +04:00)

Azerbaijan, Baku, July 12 / Trend A.Akhundov /

The first meeting of the working group on trade and economic cooperation between Azerbaijan and the Xinjiang Uyghur Autonomous Region (Xinjiang) of China held in Baku this week stressed the need for a mechanism to guarantee the investment risks.

"The Chinese side emphasized the need to strengthen political and financial support for international investment activities of small and medium-sized enterprises, create mechanisms at the national level to assess investment risks, implement policies of insurance of bank lending to small and medium enterprises, thus creating a mechanism to guarantee the investment risk of enterprises," the protocol adopted at the meeting reads.
In addition, both sides expressed their willingness to share information in the field of investment projects.

"The sides will take active measures to further increase the volume of bilateral trade, while encouraging businesses to establish and develop cooperation in sectors such as petrochemicals, power generation, telecommunications, alternative energy, manufacture of electrical products, agricultural products, etc." the protocol reads.

The sides noted the importance of developing cooperation in the financial and banking spheres. They decided to promote bilateral co-operation between banks, encouraging China's banks to increase trade networks in Azerbaijan, as well as held discussions on improving the efficiency of settlements between the financial institutions of both countries.

The parties also agreed to strengthen and develop bilateral contacts between local authorities, facilitate collaboration and information sharing in law on export-import goods, carry out regular activities to stimulate trade, as well as organize an exchange of trade delegations, provide mutual aid in the temporary importation of exhibits and vehicles to the organization of exhibitions and fairs.

"The Azerbaijani side expressed readiness to promote the Azerbaijani companies' participation in the exhibition 'China-Eurasia', thereby encouraging domestic companies to establish new business contacts and familiarity with preferential investment policies of Xinjiang," the protocol reads.