Securities Market Increased by IBA

During the first three quarters of 2016 the volume of the market of corporate securities in Azerbaijan amounted to 8 billion 287 million manat, 2.6 times more than in the first nine months of last year. However, as the analysis of official data shows, the market would not increase by as much, if its main players were not government agencies.

A kind of securities market generator is the International Bank of Azerbaijan. Because of its toxic assets the stock market “revived” in H2 of 2015; the state non-bank credit organization JSC Agrarkredit issued bonds of several billion AZN under the guarantee of the Ministry of Finance, which were purchased by the Central Bank under 3% per annum.

The Financial Markets Supervision House revealed the statistics of the securities market for the first nine months of 2016. During this period, about 2,000 deals with shares were concluded for a total amount of 700 million AZN (+ 40%). The primary market for corporate bonds with a manat face value on 23 transactions amounted to 7.5 billion manat, and in foreign currency - 22 million manat. The secondary bond market due to lack of Mortgage Fund bonds in the market decreased 29-fold and amounted to a total of 64 million manat.   ------08D