Baku, Azerbaijan, July 1
By Azad Hasanli – Trend:
Disbursement of the loan funds, allocated to Azerbaijan by the World Bank (WB) for the implementation of the Capital Markets Modernization Project, was at 98 percent in June 2016, with several outstanding payments due in the next few months, says WB report posted on its website.
The WB Baku office told Trend that there is no need to prolong the project’s implementation period.
“WB rules allow completing the work within four months after the official completion of the project,” said the WB office.
It was also added that despite the project’s completion, the WB will continue dialogue with the Azerbaijani government in this direction, in particular, with the country’s Financial Market Supervisory Body. Moreover, the work will be continued within the technical assistance provided by Switzerland’s State Secretariat for Economic Affairs (SECO) for the Capital Markets Modernization Project.
The WB report says the project was implemented overall successfully and is closing on July 1, 2016 after five years of implementation.
“Project development objective (PDO) was achieved, as indicated by the significant growth of securities issue during the life of the project and confirmed by the project indicators,” says the report. “Securities issue increased by 20.7 percent (as of October 10, 2015) during this period, and then slightly decreased and totaled 14.1 percent in late May 2016.”
Eight out of nine indicators have been fully met or exceeded the target, according to the report. The new legal and regulatory framework have been established and enforced, and the new integrated capital market information system (CMIS) for securities trading, clearing, settlement and supervision was installed, tested and became fully operational.
“The qualitative changes achieved during the life time of the project are essential for the future market development in a sustainable and healthy way,” added the report.
Once the market returns to normal upon macroeconomic and regional stabilization, the reforms undertaken under the project will enable issuers to tap the markets and resume issuance in a more effective, efficient and transparent manner, according to the report.
The WB allocated $1.2 million to Azerbaijan for the implementation of the Capital Markets Modernization Project approved in March 2011. The project’s total cost is $15.8 million. The loan allocated by the International Bank for Reconstruction and Develolpment (IBRD, a member of the World Bank Group).
Moreover, SECO approved the allocation of technical assistance in the amount of $1.6 million for the implementation of the project’s two components. The share of the Azerbaijani government in the project is $2.2 million.
Azerbaijan joined the WB in 1992.