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SECO may allocate additional financing to Azerpocht

ICT Materials 9 February 2010 16:17 (UTC +04:00)

Azerbaijan, Baku, Feb. 9 / Trend H.Veliyev/

The State Secretariat for Swiss Economic Affairs -Seco is ready to render technical assistance to the national postal operator Azerpocht, in connection with prolongation terms of the World Bank's (WB) project on "Development financial services in Azerbaijan", Communication and IT postal service department head Novruz Mammadov told Trend .

The project was to complete by late 2009, but the bank decided to prolong terms for a year due to the its incompleteness

"At present, Seco and the WB are considering issue on providing next grant in the framework of the project. Seco's first grant was about $500,000," Mammadov said

The total cost of the project hit $17.5 million, of which $12.25 million fell to the WB's loan and the rest part to the Azerbaijani government.

"We held tenders and signed contracts on purchasing and installing corresponding technical equipment. We may connect all mail service branches to the automated corporate information system after the equipment is supplied," Mammadov said

According to Mammadov, at present, about 200 branches are connected to the system

"We will be able to provide banking services after the Central Bank of Azerbaijan (CBA) issue license. According to the management rules, the company's minimal authorized capital is defined at 20 million manat for providing financial services" 

Initially the postal branches will implement limited banking operations including cash operations, money transfers and opening customer accounts.

We plan to issue loans to population in the future, he added

Azerpocht will be a serious rival for the banking market players entering the market.

Forty-six banks and 626 branches have been functioning on the market.

Azerpocht has 1,600 branches.

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