Azerbaijan, Baku, Jan. 8 / Trend N. Ismayilova /
The new conditions for interbank loans, traded on guaranteed money market (GMM) organized by the interbank loan market of the Baku Interbank Currency Exchange (BBVB) are expected to be approved one of these days, Farkhad Amirbekov, BBVB head, told Trend.
The currency exchange submitted the proposals to agree with the Central Bank of Azerbaijan (CBA). It is proposed to increase the terms of issuing interbank loans on GMM from 30 days to three months. At present, the maximum amount of drawing is 1 million manat. It is proposed to increase it up to 2 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.
The official exchange rate is 0.7977 manat to $1.