Baku Interbank Stock Exchange Prepared to Assist in Development of Tbilisi Exchange

Business Materials 28 October 2008 19:00 (UTC +04:00)

Azerbaijan, Baku, 28 October / Trend corr. N.Ismayilova / "The August developments in Caucasus broke realization of a joint project with the Tbilisi Interbank Stock Exchange (TISE)," Farhad Amirbeyov, the head of the Baku Interbank Stock Exchange (BBVB), said.

"Process of establishment integrated trade system slightly broke. It was a result of the latest developments in Caucasus. We understand our colleges. I think the time will come when we return to this issue," Amirbeyov said.

On the base of the signed cooperation protocol with the TISE in 2007, joint one-year cooperation program was developed. In accordance with it, exchanges should develop proposals on integration f their trade systems by the end of 2008.

Amirbeyov believes that cooperation between the Baku and Tbilisi exchanges should accelerate technological development of the TISE.

"First of all, it can influence on methodological development of the exchange, because so far, the Tbilisi exchange has held its auctions in accordance with the fixation method and this is the oldest method, Amirbeyov said. The Baku exchange shares its own experience in technological aspect and taking into consideration of size of markets, I think the BBVB's experience can be more useful for our Georgian counterparts."

According to Amirbeyov, in case of establishment of common trade and calculation platform, it will be possible to provide mutual access of banks of two countries to monetary markets. The Azerbaijani and Georgian banks can have access to currency markets in future while getting permission from National Banks of both countries.

"The matter is monetary markets are more prepared to integration," he said.

If operations are realized at a loan market, banks can issue loans and have correspondent accounts within the framework of banking licensing, got from National Banks of Azerbaijan and Georgia.

As to access to currency markets, central banks of both country should hold consultations for this purpose. Preliminary discussions were held in summer of 2007 during Georgian Delegation's Baku visit. At that time, the delegation included head of the Tbilisi Exchange and representatives of National Bank of Georgia.

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