CBA receives proposals to change terms on loans on guaranteed money market
Azerbaijan, Baku, Nov. 26 /Trend, N.Ismayilova/
Baku Interbank Currency Exchange (BBVB) submitted to Central Bank of Azerbaijan (CBA) proposal to increase the term and amount of interbank loans, traded at the guaranteed money market (GMM), the head of BBVB Farhad Amirbeyov said Friday.
"We have discussed with commercial banks of the country the possibilities to increase the term and amount of interbank loans, have revealed a range of proposals and come to a decision to start with the minimum," said Amirbeyov.
According to him, it was decided to increase the terms of interbank loans in GMM from 30 days to three months. Today, the maximum amount of attraction is one million manat, which is proposed to increase to two million manat.
In October 2009 the Central Bank of Azerbaijan, BBVB and a number of banks - market makers of the money market (Demirbank, AGBank, SDS "Nikoil", Bank Standard, Pashabank, Unibank and Bank of Baku) - signed a collective agreement, which is the legal basis for a new segment of money market. Turan Bank and AFB Bank later joined the project.
The GMM is a segment of the interbank loan market where execution of commitments on loan transactions is guaranteed by the Central Bank. Trading limits in trading limits are also considered and adopted by the Central Bank. Each of the banks participating in the agreement may attract credit funds amounting to no more than one million manat per month. The maximum term of the loan is no more than 30 days. Interest rates amount are determined by the banks.