WB to help improving Azerbaijan's financial sector (exclusive)
Baku, Azerbaijan, Nov. 6
By Azad Hasanli – Trend:
The World Bank (WB) will launch the second project on modernization of financial sector in Azerbaijan in late November-early December 2016, Angela Prigozhina, WB private and financial development sector leader, told Trend.
“We continue work within the first project on modernization of the financial sector, however, we plan to launch the second project in late November-early December 2016 that will be financed jointly with Switzerland’s State Secretariat for Economic Affairs (SECO),” said Prigozhina.
She added that the SECO will allocate $3 million as part of the technical assistance.
The project is primarily aimed at enhancing financial sector’s stability, establishment of effective practices of rendering financial services and protection of rights of these services’ consumers, according to her.
Meanwhile, as part of the project, special attention will be paid to the development of a modern environment for qualitative supervision and work with troubled financial institutions, added Prigozhina.
“We will help to bring the regulatory legal framework for other financial services markets, in addition to the stock market, in line with international standards,” she noted adding that these are the banking and insurance sectors, regulation of payment systems market, credit market, including activities of non-bank credit organizations.
Prigozhina said also that the WB will also work with Azerbaijan Deposit Insurance Fund (ADIF) in order to bring its activity in line with international standards.
In particular, it is about the key principles of the effectiveness of deposit insurance systems, which are adjusted by the International Association of Deposit Insurers (IADI), she added.
The project will last for more than three years, according to her.
"We count on a comprehensive and effective program,” added the WB official.