Azerbaijan, Baku, Jan.17 / Trend A.Akhundov /
WB mission led by the head of the Capital Markets Modernization Project (CMMP) Uzma Khalil will start the visit to Azerbaijan from Jan.25, WB Baku Office told Trend on Tuesday.
"The further actions on its implementation, as well as implementation of the project's accountability in budget and corporate sectors (CAP/SAP) will be discussed in connection with the project coming into force," WB Baku Office said.
WB mission will be in Baku during a week.
The loan agreement on CMMP was signed between the Azerbaijani government and the WB in September, 2011.
The total project cost is $15.8 million. The World Bank has allocated a loan worth $ 12 million to Azerbaijan to implement it. The government's share is $2.2 million, Swiss State Secretariat for Economic Affairs (SECO) - $1.6 million. Period of the project's implementation is 2011-2015. The loan is allocated for 15 years with the grace period of 3 years.
The CMMP project consists of 4 basic components - development of market infrastructure and its automation, strengthening and improving legal and regulatory base, demand stimulation and rise of market's potential.
The first component envisages creation of single central depository and calculating system for carrying out all transactions on securities in the country, rise of level of market automation, expansion of depositary resources, reducing share of ex-pit transactions and creation of relevant mechanism of market guarantee.
The second component envisages support of the new law on securities, assessment of the bank's participation in the market and creating possibilities for branches, as well as creating possibilities for joint investment of insurance companies and use of new regimes of licensing market participants.
The third component envisages support of development of state securities market, corporate debt securities, implementation of the corporate enlightenment program.
The fourth component envisages creation of the training center on capital market, implementation of public education program and acquaintance of international investors with the Azerbaijani market.
Financing of the project will be implemented by the loan resources of the World Bank for Reconstruction and Development (WBRD).
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.
Special attention will be paid on improving the legislative base for the next stage, market infrastructure and the completion of the automation of securities trading into a single platform and measures will be taken to promote demand and supply in the market.
Total project cost of CAP/SAP is $24 million. The loan agreement on the project was signed in September, 2008. Its implementation will end in December, 2011.
The project is financed by a loan from the World Bank to the sum of $11 million, with grants from the Japanese Foundation PHRD ($3 million), Seco ($2 million) and shares in the Azerbaijani government ($8 million).
Azerbaijan has already prepared 28 national standards for commercial sector. There are 35 standards of financial accountability and audit. The transfer to IFRS for the public sector started in Azerbaijan from Jan.1, 2008.
The Bank has allocated to Azerbaijan $ 2.9 billion to fund 43 projects. The country ranks third on the bank portfolio after Turkey and Kazakhstan.