Improving conditions and well-being of small and medium-sized enterprises is one of the main functions of the WB, he said, adding that capital markets are one of the ways to achieve this goal.
Capital markets reform is quite difficult, it’s necessary to put a lot of efforts in order to implement it, he noted.
After many years and through joint efforts, Azerbaijan succeeded in carrying out capital markets reform, Berndt added.
He said that capital markets reform creates conditions which will facilitate the inflow of direct investments.
Nevertheless, Azerbaijan’s government should continue its work in order to ensure effective use of capital markets, including during privatization, he noted.
In March 2011, the WB approved the allocation of a loan of $12 million to Azerbaijan for the Capital Markets Modernization Project, while the total project cost is $15.8 million.
In addition, the Swiss State Secretariat for Economic Affairs (SECO) allocated $1.6 million for the project. Also, some $2.2 million were allocated by the Azerbaijani government.
The objective of the Capital Markets Modernization Project for Azerbaijan was to increase the use of equity and corporate debt as financing and/or investment instruments through the adoption of an effective capital markets regulatory framework and infrastructure.
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