Securities, Which Can Be Used as Collateral for Mortgage Bonds, Determined

The Cabinet identified on January 25 criteria for determining the countries, the securities of which may be included in the provision of mortgage bonds, as an additional asset.

According to the decision, in the provision of mortgage bonds, as additional assets, the securities of the following countries can be included:

- The countries of the Organization for Economic Cooperation and Development (OECD), which have a long-term credit rating at BBB- (according to the classification (Standard & Poor's and Fitch) and Baa3 (Moody's);

- Countries which are not OECD members, have long-term credit rating of AA - (Standard & Poor's and Fitch);

- Countries and their central banks, which have long-term credit rating of Aa3 (Moody's).

JSC AMF produces secured mortgage bonds. However, the Fund does not say specifically what securities they are secured by.

Recently, the AMF announced the release of interest-bearing mortgage bonds for AZN 50 million at 3% per annum. At the first step bonds totaling 10 million manat will be placed. --08D