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Review of monetary sector in Azerbaijan (January-March 2015)

Analysis Materials 13 May 2015 14:45 (UTC +04:00)

As of January-March 2015, the Central Bank of Azerbaijan (CBA) stressed further decrease in its foreign exchange reserves.

According to the CBA, as of April 1, the volume of foreign exchange reserves totaled $ 9.472 billion compared to $ 11.004 billion as of March 1, $12.681 billion as of February 1, 2015 and $13.758 billion as of January 1, 2015. For comparison, the CBA currency reserves reached $ 14.996 billion as of December 1 and $15.193 billion (an absolute record) as of August 1, 2014.

Since early 2015 the foreign exchange reserves, held by the CBA, have decreased by $4.29 billion (31.2 percent) - from $13.76 billion to $ 9.47 billion as of March 31.

During March, the CBA's foreign exchange reserves declined by $ 1.5 billion (1.39 percent) compared to $5.24 billion (35.6 percent) in the same period of 2014.

The decline in the CBA foreign exchange reserves has been observed since July 2014. Earlier, this happened slowly (around $20-50 million). But their volume has sharply reduced (more than $1 billion monthly) since December. This is associated with an increase in demand for dollar supply in the country.

The CBA continues participating on the foreign exchange market of the country after the manat rate adjustment, CBA chairman of board Elman Rustamov said earlier.

Rustamov explained this by the still ongoing process of dollarization.

"Many bank customers keep their funds in dollars, and we believe that this trend will continue towards increasing the dollar savings," said Rustamov.

"We can't restrain the population from keeping their funds in dollars. But we have sufficient amount of currency reserve to allow the population to convert their funds into dollars without any problem," he added.

Part of the [currency reserve put up for sale] was directed for meeting the demands of the population, while the other part - for state needs, Rustamov said.

The exchange rate of Azerbaijani manat to the US dollar was reduced to 1.05 manat for $1 from Feb.21 (compared to 0.7844 manat earlier), which corresponds to the cheapening of rate by 33.9 percent.

Currency market and manat rate

The decision of the Central Bank of Azerbaijan (CBA) on the adjustment of the national currency helped to avoid dollarization of 70 percent of manat money supply, Rustamov said.

"When we switched to the two-currency basket [Starting from February 16, CBA refused to peg the manat to the dollar], it brought specific dynamics to the national currency, which began to be felt in the market," he said.

He said that the massive dollarization could lead to the fact that 70 percent of manat supply would be converted into US dollars, and this would lead to loss of control over monetary circulation and the national currency rate, so it was decided to adjust the manat rate.

If the Central Bank did not change the rate of manat, then given the fact of devaluation of national currencies in neighboring countries, on the one hand, competitiveness of Azerbaijani goods on foreign markets would decrease, on the other hand, the situation of the local businesses that provide the domestic market with their products would have worsened, Rustamov said.

As of March 31, 2015, the official exchange rate was set at 1.0485 manat compared to 1.05 manat per $1, which has been in force since February 21. The Azerbaijani currency depreciated by 33.67 percent since the failure of pegging of the Azerbaijani manat to the US dollar and introducing of the dual-currency basket (February 16), when the rate was 0.7844 manat per $1. As of early 2014, the official exchange rate was 0.7845 manat per $1, but as of early 2013 - 0.7850 manat.

At the same time, the euro rate as of March 31 was set at 1.1317 manat compared to 1.1950 manat per euro, which has been in force since February 21.

The single European currency greatly depreciated versus Azerbaijani manat in January. On January 26, the official exchange rate was set at 0.877 manat (less than 88 "cents") for 1 euro. Such euro rate versus Azerbaijani manat has been never observed. But as of February 23, the euro rate was set at 1.195 manat.

Azerbaijani monetary market

CBA's important objective is to manage the money supply at an adequate macroeconomic and financial stability level, in terms of continuous growth of foreign exchange reserves of the country and increased liquidity of the banking system.

A decrease in the foreign exchange reserves of the country, as well as the CBA decision as of February 16 about holding the exchange rate policy on the basis of the mechanism of the dual currency basket that includes the dollar and the euro, significantly affect the amount of the monetary aggregates in February.

The money supply rate (M2) (cash in circulation (outside banks) and remainders in the domestic currency on accounts of non-financial organizations, financial (excluding credit) organizations and physical entities) decreased by 8.2 percent in March 2015 compared to the last month and by 22.6 percent compared to the same period of 2014, the Central Bank of Azerbaijan's report said.

The money supply rate (M2) amounted to 12.49 billion manat as of March 2015 compared to 13.6 billion manat as of February 1, 2014 and 16.13 billion manat as of April 1, 2014, according to the report. The amount of cash money supply (M0) decreased by 25.63 percent during a year and amounted to 7.4 billion manat compared to 9.95 billion manat as of early April 2014. M0 decreased in March by 7.04 percent compared to last month.

As of March 2015, Broad Money Supply (M3) totaled 19.51 billion manat or 0.6 percent more compared to the same period in 2014 (19.38 billion manat), but it is 5.2 percent less compared to January 2015. The transaction money (M1) decreased by 24.5 percent during a year and amounted to 9.29 billion manat compared to 12.3 billion manat as of March 2014. M1 decreased by 8.1 percent compared to last month.

Parameters of monetary market, in billion manat:

Volume as of Apr. 1, 2015

Money mass in extensive understating (М3)

19,51

Money mass on manat (М2)

12,49

Cash in manat (М0)

7,4

Non-cash in manat

5,09

The expanded monetary base in Azerbaijan totaled 8.919 billion manat as of April 1, 2015 or by 8.4 percent less compared to the previous month.

In annual terms, the monetary base in Azerbaijan decreased by 20.4 percent. For comparison, as of March 2014, this figure was 11.206 billion manat.

As of April 1, 2015, the monetary base in manat amounted to 8.339 billion manat versus 9.110 billion manat in February, 10.551 billion manat in January and 11.107 billion manat as of April 1, 2014.

In the mentioned period, the volume of money in circulation amounted to 8.055 billion manat, while in February this figure was 8.701 billion manat, 10.145 billion manat in January, 10.677 billion manat as of April 1, 2014.

The ratio of the mass of cash in circulation to the monetary base was 90.3 percent as of March 2015, increasing by 0.9 percent compared to the previous month and decreasing by 5 percent compared April 1, 2014.

The bank reserves stood at 859.4 billion manat in March 2015 or 16.43 percent less than in February (1.028 billion manat) and by 65.46 percent more than in March 2014 (519.4 million manat).

Azerbaijan's loan market

Azerbaijani banks increased lending to the economy by 32.5 percent in January-March 2015 compared to the same period of 2014, the report said.

The banks issued loans totaling around 20.632 billion manat, including around 12.209 billion manat (59.17 percent) in national currency and 8.423 billion manat (40.83 percent) in freely convertible currency as of April 1, 2015, the report said.

This ratio hit 73 and 27 percent in January 2015, but 60 and 40 percent accordingly in February.

By comparison, the figure hit 15.889 billion manat (around 11.503 billion manat in national currency and 4.386 billion manat in freely convertible currency) as of March 2014.

Of the total portfolio, borrowings and loans worth 1.213 billion manat (5.88 percent) were overdue compared to 853.7 million manat (5.37 percent) as of February 2014.

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution. The share of overdue loans has increased by 42.12 percent in a year. The amount of the overdue loans has increased by 24.27 percent since early 2015.

The volume of short-term loans amounted to 4.586 billion manat (including overdue loans worth 451 million manat) as of March 2015 compared to 3.544 billion manat (including overdue loans worth 388.8 million manat) as of March 2014. The volume of short-term loans in the economy increased by 29.4 percent in a year.

The volume of long term loans amounted to 16.046 billion manat (including 762.4 million manat worth overdue loans) as of January-March 2015, compared to 12.345 billion manat (including 464.9 million manat worth overdue loans) as of March 2014. The volume of long term loans has increased by 30 percent in a year.

The credit portfolio of the state banks in the country hit 7.441 billion manat with the specific weight of 36.1 percent, while private banks issued loans worth around 12.632 billion manat with a specific weight of 61.2 percent.

The remaining 2.7 percent fell to the share of non-bank credit organizations which issued 559.5 million manat, according to the CBA.

The Azerbaijani banks increased the consumer lending volume by 29.8 percent in January-March 2015 compared to the same period of 2014, said the Central Bank of Azerbaijan's report on the results of the first quarter of 2015.

The share of consumer loans in a total volume of the banks' loan investments amounted to 40.2 percent, or 8.3 billion manat. For comparison: their share accounted for 40.6 percent, and the amount of issued loans - 6.46 billion manat in January-March 2014.

The trade and services (14.3 percent or 2.95 billion manat) ranked second on the share in the total loan portfolio of banks. The construction and real estate sector (13.6 percent or 2.81 billion manat) ranked third.

Around 10.8 percent of the total volume of lending to the real sector of Azerbaijan was directed to the industry and production. In nominal terms it amounts to 2.24 billion manat.

The share of transport and communication hit 4.2 percent (866.1 million manat), agriculture and processing reached 4.5 percent (932.3 million manat), energy, chemistry, and natural resources - 1.3 percent (267.9 million manat).

The loans given to the population in Azerbaijan's districts totaled 3.381 billion manat as of January-March 2015, or 16.4 percent of the banks' total loan portfolio, the report says.

The figure hit 17.251 billion manat in Baku in January-March. Here the loans in national currency (manat) amounted to 9.753 billion manat. In January-March 2015, the average interest rate on loans throughout the country was 13.2 percent, while in Baku this index stood at 12 percent. The lending volume in the Absheron Economic district totaled 657.3 million manat at an average rate of 19.6 percent.

In other economic districts the lending index was as follows: Aran - 837.3 million manat at a rate of 23.5 percent, Mountainous Shirvan - 111.02 million manat at a rate of 24.9 percent, Ganja-Gazakh - 743.66 million manat at a rate of 10 percent, Guba-Khachmaz - 286.98 million manat at a rate of 20.7 percent, Lankaran - 304.05 million manat at a rate of 24.1 percent, Shaki-Zagatala - 239.5 million manat at a rate of 21.7 percent, the Upper Karabakh - 60.8 million manat at a rate of 19.6 percent, Kalbajar-Lachin - 9.15 million manat at a rate of 19.6 percent, Nakhchivan - 131.84 million manat at a rate of 13.6 percent.

The Azerbaijani banks decreased interest rates on loans in local and foreign currency in March 2015, the report said.

The average rate on bank lending to the economy of Azerbaijan in national currency amounted to 14.02 percent as of late March 2015 compared to 14.15 percent in February, 13.71 percent in January and 13.81 percent as of early 2015.

The average rate on bank lending in freely convertible currency made up 12.9 percent compared to 13.08 percent in February, 14.28 percent in January and 14.07 percent in early 2015.

The average rate on bank lending to legal entities in national currency amounted to 9.75 percent compared to 9.78 percent in February, 9.74 percent in January and 9.99 percent as of early 2015.

The average rate on bank lending to corporate clients in freely convertible currency amounted to 8.84 percent compared to 8.89 percent in February, 9.22 percent in January and 9.18 percent in early 2015.

As of March, the average rate on bank lending to physical entities in national currency amounted to 18.39 percent compared to 18.65 percent in February, 18.59 percent in January and 18.53 percent in early 2015.

The average rate on bank loans to individual customers in freely convertible currency was 21.42 percent compared to 21.75 percent in February, 22.27 percent in January and 21.52 percent in early 2015.

Mortgage lending

The Azerbaijan Mortgage Fund (AMF) under the Azerbaijani Central Bank delivered loans amounting to 6.7 million manat in March 2015 or 2 times less than in the same period of 2014, the report said.

The loans amounting to 20.7 million manat were delivered through AMF in January-March 2015 or by 24.45 percent less than in the same period of 2014, the Central Bank of Azerbaijan's report said.

The total amount of refinancing the loans delivered by the banks earlier, hit 15.4 million manat in March 2015, according to the report.

The average amount issued by AMF authorized banks is 40,306 manat (this figure amounted to 39.676 manat in March 2014), the average term of loan issue - 279 months (278 months), the average interest rate is 6.76 percent (versus 6.86 percent in 2014), and the average monthly payment is 297.2 manat (319.4 manat).

Some 2.6 million manat was transferred from the state budget to the AMF in March 2015.

Mortgage loans worth more than 651.3 million manat have been delivered since launching financing through the AMF, including 97.1 million manat in 2014, 112.9 million manat in 2013, 74.77 million manat - in 2012, 95.64 million manat - in 2011, 97.08 million manat - in 2010, 76.9 million manat - in 2009, 70.2 million manat - in 2007 and 5.6 million manat - in 2006.

Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 manat at a rate of 8 percent with a payback period of 25 years. Terms under the social mortgage are 50,000 manat at an annual rate of 4 percent with a payback period of 30 years. The initial payment under a social mortgage is 15 percent, whilst a conventional loan is 20 percent.

Conditions of mortgage lending are as follows: Loans must be issued in Azerbaijani manat and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house.

The volume of mortgage lending must not exceed 80 percent of the market price and the monthly payment must not exceed 70 percent of the debtor's monthly income. It is compulsory to have an agreement on life insurance.

Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs and those making special contributions to sport as well as to the military with at least a three-year service term. Each family having the right to such a mortgage can only use the opportunity once.

At present, the authorized banks of the Mortgage Fund are 30 banks [some 45 banks operate in the country].

Some 21 insurance companies [their total number is 27] and 16 appraisal organizations are the participants of the mortgage market.

Azerbaijan's banking sector

The economic cycles, seasonal factors and the attitude of investors, dictated by a variety of causes impact on the dynamics of deposits.

As of January-March 2015, the depositary base of Azerbaijani banks increased by 0.2 percent, the report said. It increased by 39.14 percent compared to the same period of 2014.

As of April 1, 2015, the total amount of bank deposits and deposits of physical and legal entities totaled 18.52 billion manat compared to 13.31 billion manat as of early April 2014, according to the CBA.

Around 5.55 billion manat fell to cash (29.97 percent), 2 billion manat were demand deposits, and 3.55 billion manat - term deposits.

The funds in foreign currency amounted to 12.97 billion manat (70.03 percent), including 3.12 billion manat - demand deposits and 9.85 billion mantas - term deposits.

The ratio of deposits in local and foreign currency has changed in favor of the latter compared to March 2014. Thus, as of March 2015, the deposit funds in manat amounted to 33.1 percent, while 66.9 percent accounted for those in foreign currency.

The deposits of physical entities increased by 20.34 percent, while the volume of legal entities' deposits by 66.5 percent in January-March 2015 compared to the same period of 2014.

As of March 2015, the volume of physical entities' deposits in the banks amounted 7.78 billion manat compared to 6.66 billion manat in early April 2014.

Around 2.7 billion manat (34.7 percent) of the population's funds were placed in the national currency, while 5.08 billion manat in freely convertible currency (65.3 percent), according to the Central Bank.

It should be stressed that the growth of the population's deposits in dollars is connected with the process of sharp devaluation of the manat by almost 34 percent on February 21.

In January 2015, some 60.05 percent of the population's funds were invested in banks in manat, and the rest amount in foreign currency. A tendency of prevailing the population's cash deposits in banks in the national currency over the foreign currency deposits has been observed in Azerbaijan since 2012. So, as of 2014, some 4.422 billion (61.5 percent) of funds were placed in the national currency, 2.766 billion manat - in freely convertible currency.

As of March 2015, the volume of deposits of financial organizations amounted to 6.09 billion manat compared to 3.61 billion manat as of March 2014. The volume of deposits of non-financial organizations totaled 4.64 billion manat compared to 3.04 billion manat in the same period of 2014. The total volume of deposits of legal entities totaled 10.74 billion manat compared to 6.65 billion manat as of April 1, 2014.

The population's deposits, attracted to Azerbaijan's banking system from the country's districts (except for Baku), totaled 597.15 million manat in January-March 2015, or 7.67 percent of the total bank deposits.

The volume of deposits in Baku was 7.184 billion manat, while some 2.344 billion manat accounted for the deposits in the national currency.

In this period, the average interest rate throughout the country hit 8.1 percent and in Baku - 8.2 percent.

Thus, Baku is still the leader on such indices as attracting the population's deposits by the banks.

The Absheron economic region (194.5 million manat at an average rate of 8.7 percent) is in the lead in terms of drawing the deposits of the population in the districts.

During this period, the volume of deposits in the Aran economic region - 94.12 million manat at a rate of 5.8 percent, Mountainous Shirvan - 13.21 million manat at a rate of 7.1 percent, Ganja-Gazakh - 135.5 million manat at a rate 7.6 percent, Guba-Khachmaz - 40.7 million manat at a rate of 6.9 percent, Lankaran - 38.27 million manat - the rate of 7.4 percent, Sheki-Zagatala - 39.4 million manat - the rate of 6.4 percent, Upper Karabakh - 15.5 million manat - 4.5 percent, Kalbajar-Lachin - 2.26 million manat - 5.7 percent, Nakhchivan - 23.8 million manat - the average rate of 4.5 percent.

The Azerbaijani banks increased interest rates on deposits both in national and foreign currency in March 2015, the report said.

The average rate on deposits in manat as of April 1, 2015 made up 8.99 percent compared to 8.95 percent in February, 8.82 percent in January and 8.86 percent in early 2015. The average rate on deposits in foreign currency amounted to 8.75 percent versus 8.73 percent in February, 8.93 percent in January and 9.24 percent as of early 2015.

As of April 1, 2015, the average interest rate on deposits of physical entities in manat made up 9.71 percent, while it was 9.64 percent in February, 9.41 percent in January and 9.45 percent in early 2015. The average rate on deposits of individual customers in foreign currency amounted to 9.62 percent versus 9.57 percent in February, 10.05 percent in January and 9.78 percent in early 2015.

The average rate on deposits of legal entities in manat made up 5.85 percent in early April 2015 versus 5.78 percent in February, 5.66 percent in January and 5.51 percent in early 2015. The average rate on deposits of corporate clients in foreign currency amounted to 4.31 percent versus 4.34 percent in February, 4.36 percent in January and 6 percent in early 2015.

Banks' financial activity

As of January-March 2015, there are 45 banks in Azerbaijan: 43 commercial banks and 2 state-owned banks. There are 23 banks with foreign capital. The share of foreign capital ranges from 50 to 100 percent in eight of them, while up to 50 percent in 13 banks. There are also two local branches of foreign banks.

As of March 1, 2015, the assets of the Azerbaijani banking sector amounted to 28.85 billion manat compared to 21.42 billion manat as of March 2014, the report said.

The bank assets increased by 34.7 percent during a year, and by 14.6 percent since the beginning of 2015, according to the Central Bank of Azerbaijan.

The basis of the assets of the banking sector (66.2 percent) accounted for loans delivered to the clients in the amount of 19.09 billion manat (31 percent growth during a year), investments (2.55 billion manat with 37.1 percent growth).

The funds on correspondent accounts hit 2.38 billion manat with 95.1 percent growth.

As of March 2015, other assets hit 2.3 billion manat, loans and deposits delivered by the banks to the financial sector hit 1.4 billion manat with 4.9 percent share and 26.1 percent growth)

The lion share in the structure of liabilities accounts for deposits hitting 12.45 billion manat (43.14 percent) as of April 1, 2015, showing an increase of 32.6 percent compared to the same period of 2014. Loans and deposits from the financial sector amounted to 10.37 billion manat (35.9 percent), increasing by 44.6 percent during a year.

The capitalization of the banking sector in March increased by 2.9 percent, amounting to 4.23 billion manat. In annual terms, the capital of banks increased by 24.4 percent.

The banking sector exceeded the capital requirement, imposed since January 1, 2015 (not less than 50 million manat of aggregate capital per bank) by 97.34 percent.

According to the CBA, as of April 1, 2015, the total capital of the country's banks amounted to 4.440 billion manat (an absolute record) versus 4.270 billion manat in 2014 and 3.426 billion manat as of January 1, 2014.

As of March 2015, an average total capital of the bank in the country increased by 3.518 million manat - from 95.151 million manat to 98.669 million manat.

Payment card market

The number of payment cards in Azerbaijan increased by 3.25 percent during the year and hit 6.038 million units as of March 2015, according to the report.

Some 4.76 million units of the total number of cards were debit cards, in particular, 2.46 million - social cards, 1.44 million - salary cards, 854,000 - other cards. The number of credit cards was 1.28 million units.

The total turnover on payment cards via ATMs and POS-terminals amounted to 1.14 billion manat (11.8 percent growth during a year) and the total number of transactions - 7.64 million units in March 2015 or by 12.4 percent more than in the same period of 2014, according to the report.

The number of transactions on debit cards equaled 6.04 million units totaling 918 million manat in January-March 2015.

Of the total number of transactions, around 4.68 million transactions amounting to 812 million manat were implemented on debit cards via ATMs within the country, and around 328,000 transactions amounting to 66 million manat via POS-terminals.

Some 1.6 million transactions worth 219 million manat were made on credit cards in March 2015. As many as 492,000 transactions worth 107 million manat, of the total number of transactions on credit cards, were implemented via ATMs and there were 609,000 transactions worth of 51 million manat via POS-terminals.

As of April 1, 2015, around 2,633 ATMs operated in the country of which 1,481 are located in Baku and 1,152 in other cities and regions of the country. Their total number increased by 190 units or 7.8 percent during a year compared to March 2014.

The number of POS-terminals amounted to 77,631 units of which 50,229 are installed in Baku and 27,402 units in other cities and regions as of late March 2015.

The number of POS-terminals increased by 38,859 units or over 2 times more during the year.

Stock market

The total turnover of transactions on all instruments on the Baku Stock Exchange (BSE) in January-March 2015 stood at 4.856 billion manat, or by 25.64 percent more compared to the same period of 2014.

The volume of the state securities market hit 14.9 billion manat (twofold decrease) during the reporting period and the turnover of corporate securities market totaled 691.4 million manat (a 5.6 times decrease).

The volume of derivatives market amounted to 4.179 billion manat.

The trading in derivatives accounted for 86 percent of the turnover of the stock market.

The Baku Stock Exchange started to trade derivatives on July 21, 2014.

The margin trading allows investors to buy and sell securities and financial instruments acquired from a broker under special conditions due to the temporary trading limit.

Comparative table on the results of trades on the state and corporate sectors at BSE:

Market segments

Jan.-March 2015

Jan.-March 2014

Volume of transactions (manat)

Number of deals

Volume of transactions (manat)

Number of deals

State securities market

14 914 881,15

5

30 490 065,22

13

State funds of finance ministry

14 914 881,15

5

5 507 649,74

5

SB (Finance Ministry) - (placement)

0

0

0

0

SB (Finance Ministry) -(secondary market)

14 914 881,15

5

5 507 649,74

5

Notes (Central Bank) - (placement)

0

0

59 954 800,73

17

Notes (Central Bank) -(secondary market)

0

0

84 952 060,95

2

Stock market

49 653 601,01

1080

228 792 863,19

1018

Stocks (placement)

48 320 550,00

18

228 074 130,50

300

Stocks (secondary market)

1 333 051,01

1062

718 732,69

718

Market of debt instruments

595 623 093,77

185

328 907 294,98

90

Bonds of Azerbaijan Mortgage Fund

(placement)

3 000 000,00

1

15 032 500,00

8

Bonds of Azerbaijan Mortgage Fund

(secondary market)

490 419 969,54

69

273 572 087,78

43

Other corporate bonds

(secondary market)

11 034 136,70

21

23 202 610,70

13

- including market makers

91 168 987,53

94

17 100 096,50

26

Other corporate bonds

(secondary market)

115 786 465,24

55.00

35 483 544,12

29.00

Repo operations

46 098 567,05

34

3 296 404 552,51

207

Repo operations of the central bank

16 073 614,71

15

1 741 654 037,25

86

Other repo operations

30 024 952,34

19

1 554 750 515,26

121

Derivatives market

4 179 427 031,45

20434

0 ,00

0

Currency

4 109 752 139,27

18092

0

0

Goods

69 674 892,18

2342

0

0

Total:

4 885 717 174,43

21 738,00

3 884 594 775,90

1328

Abbreviations:

- SB - state bonds

- SS - state securities

- CB - corporate bonds

- CS- corporate securities

The purchase-sale transactions of shares registered by the National Depository Center under the Azerbaijani State Securities Committee increased threefold in March 2015 compared to the same period of March 2014.

During the reporting period, the Depository Center registered 314 exchange transactions to the amount of 141.2 million manat at a nominal value and 209 transactions worth 48.78 million manat at a nominal value were registered in March 2014.

The Depository Center registered 15 off-exchange transactions in the amount of 609,300 manat at face value in March 2015, as well as 23 transactions on the additional issue worth 28.1 million manat (par value).

The volume of off-exchange transactions decreased by 2.8 times compared to the same period of March 2014. For comparison, the National Depository Center registered 33 deals worth 1.71 million manat.

In annual terms, the volume of transactions on the additional issue decreased by 4 times (22 deals worth 116.55 million manat were concluded in March 2014).

The National Depository Center was established on September 18, 1997. The founder and owner of the center's whole package of shares was the Azerbaijani State Property Committee. After the State Securities Committee was established, the center's shares were transferred to it. In this regard, the National Depository Center was re-established by the State Securities Committee on September 8, 1999 and passed the state registration on September 17, 1999.

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