Weekly economic review (Sept. 19-24)

Analysis Materials 28 September 2011 13:44

The Azerbaijani Government and the World Bank (WB) signed a loan agreement for the Capital Market Modernization Project (CMMP).

The WB has allocated a loan worth $ 12 million to Azerbaijan for the project realization.
State Securities Committee Chairman Rufat Aslanli undersigned the loan agreement on behalf of the Azerbaijani Government. WB Baku office head Joseph Owen signed the document on the bank's behalf.

"The project is designed to assist the realization of the securities market development strategy in Azerbaijan, as well as the technical organization of the information development of the stock market," Aslanli said at the signing ceremony.

This project is a continuation of the WB support to strengthen and diversify the financial sector in Azerbaijan.

The project will be funded through credit resources of the International Bank for Reconstruction and Development (IBRD is part of the WB).

The Swiss State Secretariat for Economic Affairs (SECO) will finance two components of the CMMP - improving the legal framework and development of new financial incentive instruments on the market. SECO approved the allocation of technical assistance worth $ 1.6 million for this project.

During the project realization, a particular attention will be paid to improving the legislative framework for the next stage and market infrastructure. Measures will be taken to stimulate demand and supply in the market.

The Bank's current portfolio in Azerbaijan makes up 20 projects worth $2.3 billion. Azerbaijan is a member of the World Bank since 1992.To date, Bank has allocated to Azerbaijan $ 2.9 billion in funding of 43 projects, due to which the country yield only to Turkey and Kazakhstan.