Baku, Azerbaijan, Feb. 7
By Azad Hasanli – Trend:
A mission of Germany’s KfW Development Bank will arrive in Baku on Feb. 20 to discuss expansion of cooperation with Azerbaijan, a source in Azerbaijan’s financial market told Trend.
The delegation will meet with representatives of Azerbaijan’s Financial Markets Supervision Chamber and the Central Bank of Azerbaijan, according to the source.
“One of the topics of discussion will be creation of a new mechanism that will allow placing foreign funds in Azerbaijan more effectively,” the source noted.
Besides, the sides are also expected to mull the future of the German-Azerbaijani Fund (GAF), according to the source.
Uncertainty in the fund’s operation occurred after Azerbaijan’s government rejected the third preferential loan from KfW intended for the development of small and medium enterprises (SMEs) in the country.
The government considered it unreasonable to attract a new foreign loan to support business due to the fact that there are currently enough sources of financing for SMEs in Azerbaijan.
“It was planned to start talks on a new agreement, necessary for the GAF’s operation, in January but they never started. Now, the fund’s fate will depend on the outcome of the negotiations that the KfWrepresentatives will hold in Baku,” said the source.
“KfW supports the measures and reforms that Azerbaijan’s government is undertaking for the country’s economic development, and wants to provide support in this area,” the source added.
