Countercyclical Support Facility Program

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The proposed Countercyclical Support Facility will, in the short term, help the government of Azerbaijan mitigate the significant negative economic impact caused by the crash in oil prices and the recession in the country's trading partners, which has triggered recession in the country. The government''s ongoing and planned fiscal stimulus expenditure is providing social assistance programs, creating employment, and promoting inclusive private sector development. The attached TA will facilitate design of structural reforms covering macro fiscal management, state-owned enterprise (SOE) reform, and finance sector development as well as augment capacity of select departments for implementation of the reforms. The medium-term structural reforms could be supported further under a planned policy-based loan in 2017.