Azerbaijan, Baku, Sept. 22 /Trend, N.Ismayilova/
Implementation of the World Bank Capital Market Modernization Project (CMMP) in Azerbaijan contributes to introducing advanced international standards and experience in the country, the chairman of the State Securities Committee Rufat Aslanli told reporters.
The Azerbaijani Government and the World Bank (WB) signed a loan agreement for the Capital Market Modernization Project (CMMP) today.
The total project cost is $15.8 million. The WB has allocated a loan worth $12 million to Azerbaijan for the project realization. The Swiss State Secretariat for Economic Affairs (SECO) will finance two components of the CMMP - improving the legal framework and development of new financial incentive instruments on the market. SECO approved the allocation of technical assistance worth $ 1.6 million for this project. The Government of Azerbaijan will allocate $2.2 million for the project. The project is envisaged for 2011-2015.
The loan was provided for 15 years, with a grace period of three years.
WB economist Farid Bakhshiyev said the main goal of the project is to increase the opportunities to use shares and debt capital as investment instruments.
"The CMMP project consists of four main components - develop market infrastructure and its automation, enhance and improve legal and regulatory framework, stimulate demand, promote market potential," said Bakhshiyev.
The Bank's current portfolio in Azerbaijan makes up 20 projects worth $2.3 billion. Azerbaijan is a member of the World Bank since 1992.To date, Bank has allocated to Azerbaijan $ 2.9 billion in funding of 43 projects, due to which the country yield only to Turkey and Kazakhstan.