Azerbaijan’s Interbank Crediting 20-fold Lower than its Real Volume
Azerbaijan, Baku, 17 March / Trend corr I. Khalilova/ The Baku Interbank Currency Exchange (BBVB) is expected to expand its operations in the Interbank crediting market, which is of utmost important, considering the maintenance of liquidity in the banking system of Azerbaijan, the BBVB Manager Farhad Amirbeyov said.
According to Amirbeyov, increase in the volume of the Organized Interbank Credit Market may amount to AZN 100mln a month, though last year the average index of the credit market was AZN 5mln.
In 2007, the volume of the Interbank crediting comprised AZN 57.855mln, while in 2006 it was AZN 34.984mln, and the transactions which have been already carried out in 2008 made up AZN 36.5mln.
According to Amirbeyov, 15-17 banks are taking the most active part in the Organized Interbank Credit Market. As to market maker banks, 5-7 of them out of 9 which signed the general agreement are taking an active part in the credit market.
The credit terms are dramatically varying, but the most popular are 60-day credits. The same situation is seen in the field of credit rates due the changes in rate. In March, the credit rates were dropping. If both counteragents are market makers, the rates will lower by 1-2%.
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