(MENAFN- Trend News Agency)
BAKU, Azerbaijan, September 19. Swiss State
Secretariat for Economic Affairs (SECO) is exploring the
possibility to support the development of a crop receipts market in
Azerbaijan, in cooperation with the International Finance
Corporation (IFC), Guy Bonvin, deputy head of mission, deputy head
of Regional Cooperation at the Embassy of Switzerland to Azerbaijan
and Turkmenistan, told Trend .
He recalled that in the past, SECO has supported the
strengthening of the agribusiness sector via an IFC implemented
project (project was completed in 2021).
"The project focused on regulatory streamlining and expanding
access to agri-finance products for agri-enterprises. A main
achievement has been the creation of a standardized agriculture
risk assessment tool and management instruments, which allows local
financial institutions to reduce transaction cost and hence
facilitating lending to agri-enterprises and farmers. Currently,
SECO is exploring the possibility to support the development of a
crop receipts market in Azerbaijan, in cooperation with the IFC.
This activity is seen as the potential continuation of the current
advisory activities supported by SECO in the field of the
asset-based financing through the IFC," Bonvin added.
He went on to add that the Swiss economic development
cooperation in Azerbaijan focuses on the areas of macro-economic
support and private sector development, which does not include
activities in the area of sustainable energy.
"There are no plans to change this approach going forward,"
Bonvin explained.
Further, he noted that Switzerland supports financial inclusion
in Azerbaijan through a dedicated digital financial services
program, implemented by IFC.
"Digitalization of traditional financial products and the
introduction of innovative digital financial service help to
increase financial inclusion of households and firms, and therewith
contribute to economic development. Such products can significantly
lower transaction cost, increase security and transparence of
transaction and facilitate tailoring financial services to specific
needs of consumers, in particular women.
Improved access to basic financial services also translates into
increased productivity and growth for SMEs, as well as higher
incomes for individuals. This project specifically supports
Azerbaijani IT companies. Additionally, the Star Venture
Initiative, implemented within the frame of the Small Business
Impact Fund, a multi-donor initiative of the EBRD co-financed by
Switzerland, made possible the support of 5 start-ups, mostly
active in the digital services," Bonvin added.
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