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Azerbaijan and World Bank sign new credit agreement - VIDEO - PHOTOSESSION

Azerbaijan and World Bank sign new credit agreement - <font color=red>VIDEO</font> - <font color=red>PHOTOSESSION</font>

22 September 2011 10:43 (UTC +04:00)

The document was signed by chairman of State Committee on Securities Rufat Aslanli and Joseph Owen, World Bank Country Manager.

Delivering speech at the event Aslanli noted that the project to last 1.5 year purposes to provide effective regulating framework and infrastructure in Azerbaijanâ€™s capital markets, support economic growth and high welfare by enhancing the financing and investment mechanisms such as share and corporate debt instruments. Total cost of the project makes $15.8 mln. Of these, $12mln will be allocated by the WB as a loan, another $1.6 mln â€“ by Switzerlandâ€™s State Secretariat for Economic Affairs SECO as grant. The share of Azerbaijan in the project is $2.2 mln.

Note that, the presented credit will be financed on the basis of funds of the International Bank for Reconstruction and Development (IBRD). The credit is issued for 15 years, on condition that the first 3 years will be preferential.

Aslanli reminded that Capital Markets Modernization Project will provide necessary technical, organizational and information support for the fulfillment of State program on development of securities market in 2011-2020, confirmed by the President of Azerbaijan on May 16, 2011.

In turn, Owen said that there were 4 main output regulators â€“ improvement and automation of infrastructure, improvement and strengthening of legal and regulatory framework, stimulation of demand, as well as strengthening of potential.

Department head of the Cabinet Nail Fataliyev spoke about the cooperation between the Azerbaijani government and WB within the past period and noted that it is the 52nd project signed between the sides since 1995.

SECOâ€™s representative to Azerbaijan Naile Safarova noted that cooperative relationship between the government and Switzerlandâ€™s organization had been established 10 years ago. During this period SECO invested $70 mln grant in Azerbaijan. These funds were spent to improvement and formation of legislative base, development of financial sector and region. The grant for the fulfillment of the project will be directed mainly to realization of two components â€“ improvement of legislative base and establishment of new financial instruments.