ADB to prepare roadmap to develop Azerbaijan’s capital market

The Asian Development Bank (ADB) has launched a project “Supporting Capital Market Development and Reform in Developing Asia,” which will cover Azerbaijan, Mongolia and Uzbekistan within the first stage, Report informs referring to the ADB.

Technical assistance (TA) for $750,000 from the Republic of Korea e-Asia and Knowledge Partnership Fund, managed by the ADB, was provided for the implementation of the project.

The project will be completed in December 2023.

The TA will analyze the capital markets of Azerbaijan, Mongolia, and Uzbekistan.

A review of existing finance sector and capital market diagnostics, plans, and strategies will be conducted under the TA which will lead to technical studies to determine the capital market development progress against the sequencing of milestone achievements and comparison with other countries.

This will be achieved through stakeholder consultations with relevant public and private sector entities, at a proposed forum for interaction.

"Stakeholders will jointly establish and validate country-specific road maps and strategic market development implementation plans, to address the identified gaps and required policy recommendations and capacity building in legal and regulatory frameworks, effective market infrastructure, and market supply and demand mechanisms," the ADB said.

Knowledge sharing events on capital market development are planned to be conducted. It will cover international best practices, including success factors unique to the respective regions in terms of policies, laws and regulations, infrastructure and information technology systems, market mechanisms, and products. This will be carried out through specific webinars, workshops, study tours, and other capacity building activities for policymakers, financial authorities, and financial market stakeholders.

Collaboration with the International Capital Market Association and other international institutions will be pursued to tap their expertise in bond market development and to facilitate sharing of experiences by other countries. This TA will draw on lessons learned from previous ADB projects related to capital market development and domestic resource mobilization.

The TA will transfer knowledge and make policy recommendations to DMCs for the development of capital markets to support the operational priority areas of Strategy 2030. The basis for these recommendations will be the findings of the country assessments and technical studies, as well as lessons gathered in seminars, capacity building, and knowledge sharing events.

The second phase of the technical assistance project envisages further deepening capital markets and expanding coverage through the involvement of other countries.