BAKU, Azerbaijan, May 23. The successful implementation of the "Medium and Long-Term Strategy for Managing the Public Debt of Azerbaijan" resulted in the government bond market's increase by almost nine times, reaching nine billion manat ($5.3 billion), since 2018, Director of the Agency for Managing Public Debt and Financial Obligations under the Ministry of Finance Azer Mursagulov said at the Financial Investment Forum held in Baku today, Trend reports.
He recalled that a significant growth of the government securities market coincided with 2018.
"That year, the document 'Medium and Long-Term Strategy for Managing the Public Debt of Azerbaijan', approved by the President of the Republic of Azerbaijan, was adopted. One of the main directions of the strategy was the development of domestic financial markets, increasing domestic borrowing against the background of a gradual reduction in external debt, and expanding the government securities market.
Since 2018, as a result of the successful implementation of the strategy, the government bond market has increased by approximately nine times, reaching a volume of nine billion manat. This development has also led to the expansion of other secondary financial instruments, such as the secondary market and the repo market. Thus, during this period, the secondary market has increased by five times, and the volume of repo transactions by approximately 60 times.
Historically, the predominant stakeholders in sovereign debt
instruments comprised financial institutions and insurance
entities. However, the contemporary landscape has witnessed a
diversification of the investor demographic, incorporating both
institutional and corporate players, alongside individual
investors, including non-resident participants. This serves as a
metric for the ongoing intensification and proliferation of the
market landscape.
Within this framework, it is imperative to underscore the
significance of intermediary enterprises.
"Due to their role in facilitating robust dialogue between capital providers and the securities ecosystem, as well as ensuring active market engagement," Mursagulov underscored.
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