The World Bank (WB) maintains interest in the creation of a Development Bank in Azerbaijan, Angela Prigozhina, the WB senior financial sector specialist, declared.
“We do not abandon this idea – there are a huge number of other state financial institutions, including funds and agencies that are engaged in lending to the economy and support of small and medium businesses. The development bank, or other similar consolidated and effective tool for the economic development, can be created on the basis of these institutions,” Prigozhina said.
Development banks operate at the highest standards of corporate governance and always help the private sector to solve existing problems, for example, lack of long-term financing or lack of manat loans, she added.
“However, such institutions are effective only in case of availability of a favorable business environment for competition and efficient financial market regulator. At the same time, additional reforms are needed to minimize lending risks,” said Prigozhina. “Today, work is underway to create a private credit bureau and the bills “On protection of creditor rights” and “On establishment of secured transactions registry” are in the government. Also, together with the Financial Market Supervisory Authority, we are starting comprehensive work with distressed assets, making amendments to the law “On bankruptcy” and implementing other measures.”
All these reforms are necessary for the Development Bank to become a catalyst for development of the economy, but it is also very important for the financial system to be stable, she added.
Azerbaijan joined the WB Group in 1992. (Trend/Business World Magazine)