Azerbaijan : Leveraging Postal Network for Financial and Social Inclusion
This paper provides a brief overview of the postal network reform in Azerbaijan and transformation of Azerpost, Azerbaijan’s state postal operator, into an efficient platform for basic financial services delivery throughout the country. This comple...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26222072/azerbaijan-leveraging-postal-network-financial-social-inclusion http://hdl.handle.net/10986/24199 |
| Summary: | This paper provides a brief overview of
the postal network reform in Azerbaijan and transformation
of Azerpost, Azerbaijan’s state postal operator, into an
efficient platform for basic financial services delivery
throughout the country. This complex reform, supported by
the World Bank loan for Financial Services Development
Project and the grants from the Swiss Office of
International Cooperation (SECO), was launched in 2006 and
helped the government of Azerbaijan to improve financial
services delivery and inclusion in the country in parallel
with modernizing and digitalizing Azerpost, expanding its
financial services delivery capacity, enhancing its
financial viability and maximizing the public value of
Azerpost extensive branch network of 1,600 offices. In the
period of 2007-1H2015, Azerpost total revenues, largely from
financial services (as universal postal services remain
loss-making) tripled, while volume of financial services’
sales increased four times. In 2015, Azerpost reached
financial breakeven without state subsidy, and productivity
of its staff increased 3 times. In 2009, Azerpost
corporatized and became LLC, while in 2010, based on the new
postal legislation, it was licensed as a non-bank financial
institution subject to prudential supervision of the central bank. |
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