Azernews.Az

By Nazrin Gadimova

Azerbaijan will receive assistance from the International Finance Corporation (IFC) in the creation of an audit registry, IFC Representative in Azerbaijan Aliya Azimova has said.

Azimova said at the 4th Congress of the National Confederation of Entrepreneurs (Employers) Organizations in Baku on June 18 that the draft law "On the protection of interests of entrepreneurs and regulation of inspections in the entrepreneurship field" was prepared with the IFC's participation.

According to Azimova, the priority area of ​​cooperation between IFC and Azerbaijan is to improve the situation related to the audits of entrepreneurs, the issuance of permits, and increase transparency.

The main purpose of the bill is to establish uniform rules for check-ups in the field of entrepreneurship, as well as counter unlawful interference in the activity of entrepreneurs during the audits. Businesses are divided into high, medium and low risk groups while being audited and the frequency of planned inspections will be regulated depending on the results of this division.

Entrepreneurs who have not broken the law over a certain period of time are moved to the low risk group, which reduces the number of audits.

The duration of planned check-ups of large businesses should not exceed 10 days, and the audits of medium and small entrepreneurs should not exceed five days. Unscheduled inspections of large employers should not exceed five days, and the audits of medium and small entrepreneurs should not exceed three days.

According to Azimova, IFC's portfolio in Azerbaijan currently amounts $0.5 billion, and consists of 60 investment and 10 consulting projects.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Established in 1956, IFC is owned by 184 member countries, a group that collectively determines our policies. Our work in more than a 100 developing countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

Azerbaijan became a member of IFC in 1995. Since then IFC has invested almost $393 million and mobilized nearly $73 million from other lenders in 67 projects in the financial services, infrastructure and manufacturing sectors. IFC has also implemented advisory projects focused on development of the private sector.

IFC supports sustainable growth and the diversification of Azerbaijan's economy through investment and advisory support to the non-oil sectors, with a focus on agribusiness and infrastructure. To address what is regarded as barriers to private sector investment in these and other areas, IFC implements advisory programs to increase resource efficiency, improve the business climate, and strengthen financial markets.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ), Azerbaijan's sovereign wealth fund, has committed $300 million to funds managed by IFC Asset Management Company. $150 million was designated for IFC Global Infrastructure Fund to support companies working to develop infrastructure in emerging markets, $50 million for the IFC Catalyst Fund, which is designed to stimulate the development of funds and projects focused on renewable energy and climate-friendly solutions, and $100 million for the IFC African, Latin American, and Caribbean Fund.