Azerbaijan, Baku, May 15 / Trend A.Akhundov /
The Baku Interbank Stock Exchange (BBVB) and the only reinsurance company in the country, AzRe, signed an agreement on the participation of the company in MONEY-MARKET, money market of the Bourse E-System of Trades (BEST).
According to the contract, the reinsurance company gets access to the wholesale money bank market as an equal participant with the banks. BBVB will provide the new participant access to the BEST trading system and also provide accounting and information services.
Transactions and computations in the money market segment are conducted on the basis of the 'Provisional Regulations of conducting operations on attraction and placement of funds in the BEST system', 'Regulations of the organisation of trading and conducting computations in BEST', 'Provisional Regulations for computations on credit and deposit transactions concluded within the scope of the trading session of BBVB in the credit section of organized money market' and 'Specifications of MONEY-MARKET financial instruments'.
The first Azerbaijani reinsurance company AzRe received a licence for reinsurance activities from the Finance Ministry of Azerbaijan on November 7, 2007. Its shareholders are six individuals. The company provides services to both local and regional insurance and reinsurance companies, as well as reinsurance intermediaries in the fields of life insurance, property insurance, construction risks, insurance of water, air and road transport facilities, cargo insurance, accident insurance, liability and financial risks.
In addition to AzRe, BBVB signed a similar agreement with the insurance companies Ateshgah Sigorta, Buta Sigorta and Ata Sigorta.
Baku Interbank Currency Exchange was established on June 21, 1993 as a closed joint stock company (JSC). Its shares were divided equally among five shareholders: the Central Bank of Azerbaijan (CBA), the International Bank of Azerbaijan (IBA), the Industrial and Investment Bank, Agro-Industrial Bank and the Savings Bank.
After the merger of the last three, the number of BBVB shareholders today includes the CBA, IBA and Kapital Bank, as well as the Agrarkredit non-bank credit organisation.
The Bourse E-system of Trades is built on the principle of universality in the provision of burse services and today is a modern platform for the integrated management of foreign exchange risks and short term liquidity of banks. BEST allows the Azerbaijani banks to conduct not only transactions in foreign currencies, but also active borrowings and placing on the interbank credit market.