Guaranteed Money Market expands in Azerbaijan

Photo: Guaranteed Money Market expands in Azerbaijan
 / Economy news

Baku, Azerbaijan, Feb. 18


The 'Xalq Bank' OJSC has become a member of Guaranteed Money Market (GMM) segment in line with the decision of the GMM participant banks, according to a message from the bank.

This brings the number of bank participants of the Guaranteed Money Market to 12.

GMM is operating on the basis of an agreement signed on October, 21, 2009 between Central Bank of Azerbaijan, Baku Interbank Currency Exchange (BBVB) and a number of banks - market-makers of the money market (Demirbank, AGBank, Bank Nikoil, Standard Bank, Pashabank, Unibank and Bank of Baku). This collective agreement is a legal basis for a new segment of the money market.

The guaranteed money market is a segment of the interbank credit market, where execution of obligations on credit operations is guaranteed by the Central Bank.

Trading limits of banks are fixed by the Central Bank coordinated between all participants. Decisions on changes in trading limits are also considered and accepted by the Central Bank. Each of banks participating in the agreement can raise loans not exceeding 2 million manats a month.

The maximum term of granting of credit is no more than 90 days.

The measures of the credit rates are independently defined by banks.

BBVB was established in July 1993 at the initiative of the National Bank of Azerbaijan (now Central Bank of Azerbaijan) and the largest state-owned banks - Savings Bank, Industrial-Investment Bank and Agro-Industrial Bank (now merged into Kapital Bank).

The regular trading on the exchange started in August 1994.

The official exchange rate for February 18 is 0.7844 AZN/USD.

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