Baku, Azerbaijan, Sept.16
By Leman Zeynalova – Trend:
Azerbaijan has achieved significant progress in reforming its business environment, Sebastian Molineus, World Bank Regional Director for the South Caucasus said in an exclusive interview with Trend.
“We are working with the Ministry of Finance, Financial Market Supervisory Authority (FIMSA), Central Bank of Azerbaijan, Deposit Insurance Fund and Presidential Administration through the Financial Sector Advisory Project and Financial Sector Modernization Project supported by our trusted partner SECO to enhance financial sector crisis preparedness and stability,” said Molineus.
The regional director said WB supported the authorities of Azerbaijan in many areas of reforms, to name just few, such as: creating the Financial Stability Council in July 2016; developing the new legal and regulatory framework for resolution and liquidation of failed banks in April 2017; and strengthening capital and capacity of the deposit insurance fund and building capacity of the Financial Market Supervisory Authority.
“Good progress has been achieved in restoring macro and banking sector stability, and reducing risks in the banking sector through increased capitalization of banks, reduction of non-performing loans, and exit of unviable banks. The recent unprecedented restructuring of household indebtedness, contributed to improving banking sector standing. Yet, more reforms are needed to enhance risk management, improve corporate governance in the sector, build stronger capital buffers, and resume lending to the real sector,” he said.
The regional director went on to add that Azerbaijan has achieved significant progress in reforming its business environment; similarly, robust reforms are being implemented in the financial sector, which are critical to attracting international investors and supporting the development of a strong domestic financial sector.
“In this context we are advising the authorities of Azerbaijan to modernize the financial sector’s legal, regulatory and supervisory framework in-line with international standards and good practice, and assisted FIMSA in preparing new laws which we hope will be supported by the government and Parliament of Azerbaijan. These laws include, for example, the Law on Regulation and Supervision of Financial Market (FIMSA Law), Law on Payments, Law on Insurance, Law on Banks which needs to be brought in-line with respective international standards to support financial sector stability and development,” added Molineus.
Azerbaijan joined the World Bank Group in 1992. During this period, the bank allocated loans for the implementation of over 50 projects in the country worth over $3 billion. Seven more projects worth about $1.5 billion are being implemented.
Besides the loans, WB allocated 45 grants to Azerbaijan totaling $41.586 million in 1995-2014.
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