Baku, Azerbaijan, Sept. 11
By Anvar Mammadov – Trend:
Azerbaijan has prepared a draft strategy for management of the troubled bank assets, the World Bank’s (WB) leading expert in finance and private sector in the South Caucasus, Angela Prigozhina, told Trend Sept. 11.
The expert said the strategy has been prepared by a special working group within the framework of the strategic road map on the prospects of the national economy of Azerbaijan, but has not yet been implemented.
"The World Bank has discussed this strategy with banks and the government of Azerbaijan and provided detailed recommendations regarding the strategy, including proposals on the taxation system, changes to the bankruptcy law and other details based on international experience and the peculiarities of the legislation and the financial market of Azerbaijan. We hope for the early approval of the strategy and the implementation of key recommendations in order to resume lending to the economy of Azerbaijan and to improve the financial stability of banks and enterprises of the country," Prigozhina said.
In general, the expert said, the World Bank has actively cooperated with the government of Azerbaijan in the process of making many decisions to stabilize the country's financial sector over the past few years.
"Under the auspices of the project on modernization of the financial sector, the World Bank provides recommendations for reforming laws, regulations and practices of financial supervision in more than ten directions of activity in the framework of the five key components of the project, including the recommendations on the establishment and functioning of the Financial Stability Board, the crisis response program, the reform of the banking legislation and supervision, the reform of legislation on and supervision of the insurance services market, the reform of payments market, in particular the adoption of a new law and regulatory framework," she said.
"In parallel, in the framework of the project, the experts of the World Bank from around the world transfer to the Financial Markets Supervision Chamber and the Government of Azerbaijan their knowledge on international standards and principles of functioning of the banking and insurance supervision services, the work with the troubled banks and the withdrawal of insolvent institutions from the market, liquidation of banks, reforming the deposit guarantee system, management of toxic assets, protection of the rights of consumers of financial services and so on," Prigozhina said.
The second phase of the project on modernization of the financial sector of Azerbaijan has been implemented since 2017. The project is aimed at improving the stability of the financial sector, creating effective practices in the provision of financial services and protecting the rights of consumers of these services. The project also focuses on the development of a modern environment for quality supervision and work with troubled financial institutions.
The WB also helps to bring the regulatory framework for the remaining markets of financial services other than the stock market into line with international standards. The project is implemented jointly with the Swiss State Secretariat for Economic Affairs (SECO).