Azerbaijan, Baku, May 27 / Trend , N. Ismayilova/ Azerbaijan State Securities Committee has begun to take measures to increase liquidity in the secondary market of long-term state bonds, head of the committee Rufat Aslanli said.
"The Finance Ministry first issued long-term state bonds this year. Therefore, we are working to increase liquidity in the secondary market of securities," Aslanli said.
He said increasing liquidity on the relevant level of the stock market will encourage development of market of longer-term securities.
"Usually investors invest in short-term securities only in case when there is low liquidity in the market. So, we are working to increase liquidity in the market and we will achieve more intensive placement of long-term securities," Aslanov said.
The committee has launched work with market makers of state bonds, an institute that provides liquidity in the secondary market, in a bid to establish institute of market makers, he added.
"Now we are working with some national investors so that they will act as market makers in future," Aslanli said.
Capitalization of Azerbaijan's capital market on nominal cost of issued securities is estimated at 3.44 billion manat which is equivalent to 18 percent of non-oil GDP.
Capitalization of market of corporative bonds is estimated at 72.8 million manat, state bonds of the Finance Ministry 152.8 million manat and bonds of the Central Bank are estimated at 17 million manat.
On May 27, the official exchange rate is 0.8036 manat to $1.
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