Azerbaijan, Baku, May 27 / Trend /
Stock markets lost half of their stock indexes within one and half year under the influence of the global financial crisis, Chairman of the Azerbaijan State Committee on Securities Rufat Aslanli said on May 27.
"This caused not only cut in stake cost to 10 times, but also led to decrease in number of deals on the market, as losses touched giant operations and at present positive factors are observed on the platform of small operations," Aslanli said. "In this regard, there is not the united consensus on non-stabilization of stock markets."
Channels of negative consequences of the global finance-economic crisis have not expanded so much on the Azerbaijani stock market. Moreover, he said, the government's warning measures and the pursued policy also enabled to limit serious influences of these channels.
"If we watch a structure of the Azerbaijani stock market, we can see that its component part comprises state bonds. Although the financial sector and some private companies also issued tools, but their volume was not so great and terms were adequate," Aslanli said.
As to the state bonds, he noted that "our state is pursuing too careful policy of borrowings and the drawn funds under securities is too low (even lower than one percent), unlike the country's money reserves". [The country's strategic money reserves reach about $16 billion.]
"By late 2008, Azerbaijan's stable macroeconomic position, including GDP growth rates, maintenance of the stable exchange rate of the national currency, money reserves' twice exceeding the country's foreign debts enabled to increase trust of foreign investors in the Azerbaijani economy and securities market," the head of the state committee said.
In early 2009, the world markets, particularly U.S. financial institutions experienced a serious lack of capital and stress-tests showed that 10 of the American giant 19 banks needs additional capitalization at $150 billion. These banks faced problems with liquidity and therefore, investment funds had to return their funds from different countries back to the United States.
"Even these processes did not have a considerable impact," Aslanli said.