Azerbaijan, South Korea sign memorandum on digital finance systems

Azerbaijan's Digital Finance Center and South Korea's Korea Fiscal Information Service, KFIS, have signed a memorandum of understanding on designing Azerbaijan's digital financial control and treasury systems and developing a relevant roadmap, Report informs, citing the Finance Ministry of Azerbaijan.

The document was signed during a meeting between Deputy Finance Minister Himalay Mamishov and a KFIS delegation.

The sides discussed reforms aimed at the digital transformation of Azerbaijan's public financial management system, the study of South Korea's best practices in this area, the development of digital financial control and treasury systems, and the preparation of a roadmap.

Mamishov said the digitalization of public financial management is one of the key areas of institutional reforms. He stressed the importance of continuing cooperation with the Korean side to exchange knowledge and technologies, strengthen institutional capacity and create a modern digital governance model.

It was noted that in April this year, an Azerbaijani Finance Ministry delegation visited South Korea to familiarize itself with the dBrain+ public financial management system. Earlier, Finance Minister Sahil Babayev and KFIS President Yoon Seok-Ho signed a memorandum on cooperation in the digitalization of public finance.

The next stage of the project provides for diagnosing the current public financial management system, developing internal financial control mechanisms, integrating information systems, creating fiscal risk analysis models, and preparing the conceptual design of a digital treasury system with a phased roadmap for its implementation.

Priorities for further cooperation include introducing artificial intelligence-based solutions, developing data-driven decision-making mechanisms, budget forecasting and early detection of fiscal risks, among other areas.