Baku, Azerbaijan, Dec. 12
By Azad Hasanli – Trend:
The Swiss State Secretariat for Economic Affairs (SECO) will allocate $3 million as part of technical assistance to the second project on modernization of financial sector in Azerbaijan, the World Bank (WB) said Dec. 12.
As noted, after signing an agreement, SECO will provide $2.2 million, and then $400,000 by Nov. 30, 2018 and another $400,000 by Nov. 30, 2019.
As part of the technical assistance, SECO and WB will support Azerbaijani government in enhancing the country’s financial stability by expanding regulatory and legal framework of the financial sector, as well as by strengthening regulatory and supervisory powers of Azerbaijan’s Financial Market Supervisory Authority.
The technical assistance covers five areas: supervision over the financial market, liquidation of banks, the deposit insurance system, protection of consumer rights, and troubled loans.
As part of the technical assistance, recommendations will be prepared to change the legal and institutional framework of the Azerbaijan Deposit Insurance Fund (ADIF) in order to bring its activities in line with international standards, speed up the repayment of compensations and improve the mechanism of financing in unforeseen circumstances.
SECO allocated a $4 million loan for the modernization of Azerbaijan’s financial sector in 2012. Realization of the technical assistance was completed in June 2016.