Impact Stories

South Asia: Strengthening of Stock Exchange Listing Regulations in SAFE Countries

This project sought to address two needs: a) the strengthening of stock exchange listing regulations in individual South Asia Federation of Exchanges (SAFE) member countries; and b) facilitating progress towards harmonization of listing regulations in the region. The consultant produced a comprehensive report providing recommendations for legal and regulatory change that were responsive to the circumstances of the capital markets sector in the region. The consultant, with the assistance of local representatives from the exchanges, conducted a survey in each member country to gather...

South Asia

Capital Markets

Mexico: Developing a Framework for the Issuance of Catastrophe Bonds

Mexico is exposed to significant risk from earthquake, primarily from faults lying along its Pacific coast. The resulting risk to the infrastructure led to the establishment of Natural Disaster Relief Fund (FONDEN) which provides funding after a natural disaster. However budgetary constraints led to insufficient funding for FONDEN. The Mexican Ministry of Finance and Public Credit requested FIRST support in August 2004 to: review the legal and regulatory framework, and amend if need be, to permit issuance of catastrophe bonds (CAT bonds) and ensure the process comes under the finance sector...

Mexico

Capital Markets

Mauritius: Advice on Drafting Securities Law

A request for technical assistance was received from the Mauritius Financial Services Commission (FSC), with the support of the Ministry of Industry, Financial Services and Corporate Affairs, to assist in finalizing the drafting of a new Securities Act in September 2004. This proposed Act would provide the basis for strengthening the regulation and supervision of the stock exchange and the market-related infrastructure as well as the issue and trading of securities; allow for the introduction of collective investment schemes; and provide for improved licensing and regulation of securities...

Mauritius

Capital Markets

Mauritius: Development of Second Tier Regulated Securities Market

This project was proposed directly to FIRST by the Stock Exchange of Mauritius (SEM) with the support of the Ministry of Financial Services in September 2004. The purpose of the project was to restructure the existing OTC Market and to consider the establishment of a second tier listing facility. The project called for conducting a feasibility study on the establishment of an alternative second tier market, an analysis of other OTC or second tier markets around the world, the preparation of rules governing the establishment of a new second tier market and a project plan for the closure of the...

Mauritius

Capital Markets

Azerbaijan: Development of Non-bank Corporate Bond Market

In 2004 and early 2005 there had been a small number of successful bond issues by commercial banks including a bank in which EBRD was a strategic investor. The purpose of the FIRST funded project was to prepare the ground for issuing non-bank corporate bonds and to work with some of the commercial banks’ corporate clients, thereby broadening the capital markets, injecting some investment banking skills into selected commercial banks and developing better corporate disclosures in prospectuses. FIRST initially regarded this as a high risk project and expected initial success to be limited to...

Azerbaijan

Capital Markets

Azerbaijan: Capital Market Development Plan

Over the past five years the Azerbaijani economy has been growing by double digits on average making the country more attractive for investments. However, in order to sustain the current high economic growth the country needs its non-oil sector to be strong and diversified, and to this end the Government of Azerbaijan announced securities market development as one of its priority development areas through its two national poverty reduction programs endorsed by the President of the Republic of Azerbaijan. In March 2010, the State Committee for Securities (SCS) of Azerbaijan requested FIRST...

Azerbaijan

Capital Markets

Zambia: Institute of Bankers Training Strategy

FIRST was approached by the Zambia Institute of Bankers (ZIoB) in June 2005 requesting assistance in revising the syllabi of the certificate, diploma and banking and finance degree programs to bring the syllabi in line with Zambia’s banking and finance sector requirements and international best practice. FIRST proposed that a scoping trip and training needs analysis to get a better understanding of the needs within the industry. The consultant would then develop a training and education strategy for the ZioB. This scoping trip would also produce detailed terms of reference for subsequent work...

Zambia

Banking

Timor Leste: Strategy for Establishment of a Credit Registry

The Banking and Payments Authority of Timor-Leste (BPA), the nation’s embryonic central bank, approached the World Bank, and through them FIRST, with a request for technical assistance to help create a credit registry in June 2005. The project had proposed that the BPA would be the operator of such agency during the initial period that the institution would not be able to function independently. The BPA requested assistance in drafting/agreeing the necessary guidelines/changes in regulation for the credit registry to operate effectively and in selecting an accurate technology application to...

Timor Leste (East Timor)

Financial and Information Infrastructures

Guinea: Advice on Leasing Law

Guinea has substantial natural resource endowments. Following a surge in construction activities, leasing became a necessary financial instrument to be able to have access to the otherwise expensive machinery and equipments. This project, which was approved in January 2007, aimed at contributing to the strengthening of financial sector and growth of the SME sector by facilitating the drafting of a new law that addresses leasing issues. The project built upon a survey of potential leasing demand carried out by another donor-funded program. There was a momentum to launch leasing in the country...

Guinea

Leasing and Factoring

Zambia: Regulatory Implications of a Credit Rating Agency

The Zambian authorities, led by the Bank of Zambia (BoZ) had developed a Financial Sector Development Plan (FSDP) with FIRST assistance. One of the plan's objectives was to strengthen the credit environment and improve credit culture. A Credit Reference Agency (CRA) was being established to contribute to this strengthening. A CRA operator had been selected by the Bankers' Association, after a tender, to establish a CRA in Zambia. However, the BoZ requested assistance from FIRST in February 2005 to draft/agree the necessary guidelines/changes in regulation for the CRA to operate effectively...

Zambia

Financial and Information Infrastructures