KFW to render technical assistance to Azeri bank for development of retail services
вЂњThe German Restructuring Bank KFW entered a deal with the Joint Stock-Commercial Bank Azerdemiryolbank as its fifth partner in the project вЂ�Caucasus initiatives: development of banks, serving to SME and population of Azerbaijan and GeorgiaвЂ™. To assist in the development of a retail business at the Azerbaijani bank KFW approved technical assistance in the amount of $200,000,вЂќ Roman Amirjanov, the chairman of the Management Board of the bank, told Trend. Four partner-banks Parabank, UniBank, Bank of Baku and Respublika bank participated in the implementation of the first stage of the project.
The term of the project was expanded till late 2006. KfW finances the prolonged period of the project, which started since April 2005 and granted the countries with 1.6 million euros out its special accounts. So, it was financed at the expense of the German Technical Assistance Society (GTZ). The initial budget of the project was 847,000 euros, though further they approved additional 1,270,000 euros through GTZ.
In the first stage the work with the partner-banks was implemented on five modules.
They were the improvement of the quality of service, improvement of the personnel, application of the new bank products (through the development of retail services), upgrade of cooperation between Azerbaijan and Georgia and increase of the profitability of banks.
Now it is planned to carry out deeper work in the sphere of development of retail services, in particular, in the directions which has tremendous need in the banking sector. They also include mortgage crediting, as the legal basis was established in this respect. Following rapid growth pace of banks the importance will be attached to inter-bank development, qualitative and quantitative preparedness of the banking employees,вЂќ the German Fund of Savings Banks on international cooperation, the project manager, underlined.