An agreement covering the Swiss government's technical assistance for a modernisation project of the Azerbaijani capital market has been signed in Baku today.
The agreement was signed by chairman of the Azerbaijani State Committee for Securities Rufat Aslanli and Swiss ambassador to Azerbaijan Sabine Ulmann Shaban on behalf of the government of the Swiss Confederation.
The Swiss State Secretariat for Economic Affairs (SECO) has approved an allocation of technical assistance worth $1.6 million within the agreement.
Technical assistance will be rendered on two components of the project: renewing and strengthening the legal and regulatory framework and developing new financial tools of promoting supply on the market.
'The capital market modernisation project will ensure the necessary technical and organisational support for the implementation of the state programme of development of the securities market in 2011-2020', the statement said.
The World Bank (WB) has provided Azerbaijan with a loan of $12 million towards the project. It will be funded through the loans of the International Bank for Reconstruction and Development (IBRD is part of the WB Group).
While implementing the project, special attention will be paid to the improvement of the legal base at the next stage, market infrastructure and completion of the automation process of securities trading on a single platform. The measures will be taken to stimulate demand and supply in the market.