In 1995-2015, Azerbaijan was one of the fastest-growing economies globally with the real GDP rising sixfold on the back of abundant natural resources and rallying oil prices. However, the steep oil price drop in 2015 resulted in a host of countrywide operating challenges, including economic recession, significant Local Currency (LCY) devaluation, bringing the banking sector under severe stress. As a result, numerous banks came to face capital deficiency issues, leading to the liquidation of a number of banks in post-crisis period.
Despite the recent gradual recovery the financial and banking sector remains under pressure and experience difficulties in executing its full potential. In response to this, EBRD (“the Bank”) is planning to launch the Capacity Building Technical Co-operation (“TC”) Programme for selected financial institutions in the country (Participating Financial Institutions (“PFIs”). The ultimate objective of this TC package is to help existing and potential PFIs restore and strengthen their resilience and sustainability in the post-crisis environment via:
1) increasing efficiency and transparency of internal processes, including decision-making;
2) enhancing organisational structures and ability to deal with problem loans;
3) training of the local staff;
4) strengthening MSME lending capacity; and, as a result of all of the above
5) improving balance sheet structure and profitability.
The Programme envisages support to be provided to up to five PFIs in the country.
EBRD intends to engage consultants to assist Azerbaijan’s PFIs with capacity-building measures in six areas through the two interrelated pillars (assignments).
The first assignment, titled “Strengthening PFI Resilience and Sustainability”, will cover five modules with preliminary composition outlined below:
1. Strategy and business planning;
2. Risk management enhancement;
3. NPL workout and resolution;
4. IT function review;
The second assignment, titled “MSME Lending Capacity Building””, will provide support to PFIs with:
1. Development of MSME lending operations of individual PFIs, including design of an MSME lending methodology, implementation of an appropriate organisational structure;
2. Creation of a marketing strategy;
3. Training of local managers in MSME loan analysis, and
4. Setup of the MSME monitoring and recovery units.
The donor-funded Programme with the estimated budget of up to EUR 2 million is expected to have a duration of two years, but may be extended in time subject to the pace of implementation. Two consultants will be selected for implementation of two assignments under the Programme.
Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.
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