WB to help improve Azerbaijan’s financial sector

The World Bank’s mission on financial and private sector development in the South Caucasus, headed by Angela Prigozhina, senior financial sector specialist, wil

The WB local office noted that the main purpose of the mission is to discuss the beginning of work within the second phase of the financial sector development program. The WB mission will stay in Baku until March 1.

The WB mission plans to discuss in Baku a variety of projects covering the insurance market, strengthening the financial infrastructure and solving the problem of overdue loans, the bank said.

One of the topics discussed will be dedicated to the issue of improving the deposit insurance system in Azerbaijan, the WB local office added.

The first phase of the financial sector development program was completed in June 2016. The Swiss State Secretariat for Economic Affairs (SECO) allocated a grant of $4 million for its implementation in 2012.

The SECO will allocate $3 million as part of technical assistance to the second project on modernization of financial sector in Azerbaijan.

As part of the technical assistance, SECO and WB will support Azerbaijani government in enhancing the country’s financial stability by expanding regulatory and legal framework of the financial sector, as well as by strengthening regulatory and supervisory powers of Azerbaijan’s Financial Market Supervisory Authority.

The technical assistance covers five areas: supervision over the financial market, liquidation of banks, the deposit insurance system, protection of consumer rights, and troubled loans.

As part of the technical assistance, recommendations will be prepared to change the legal and institutional framework of the Azerbaijan Deposit Insurance Fund (ADIF) in order to bring its activities in line with international standards, speed up the repayment of compensations and improve the mechanism of financing in unforeseen circumstances.

News.Az

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