Azerbaijan, Baku, Feb.8 / Trend I.Khalilova /
The Azerbaijani Mortgage Fund's bonds will be the basic tool for corporate repo transactions on the Baku Stock Exchange (BSE), Chairman Emin Aliyev told Trend on Wednesday.
The introduction of repo transactions in corporate securities is one of the most important challenges facing the BSE in 2012. Almost all of the stock exchange infrastructure, especially the trading system, has been prepared, Mr Aliyev said. He said the BSE's internal rules are being
developed and technical issues related to introducing this new tool are being solved.
"Overall, we hope that with the growth of the corporate bond market, repo transactions will also show positive dynamics," he said.
Until now, repo and reverse repo transactions were carried out with the Central Bank of Azerbaijan's (CBA) notes. However, under new rules, securities market participants will conduct repo transactions on corporate bonds.
This type of tool is provided for portfolio investors to solve problems with short-term liquidity
"We receive many signals from the financial sector, which give us the confidence to say that the money market, which is a very popular segment, will become more advanced with the introduction of repo transactions with corporate securities," Mr Aliyev said.
To this day, the fund has registered five emissions of interest uncertificated registered bonds. Placement was registered on Jan. 16 in the amount of 30 million manat.
The fund placed bonds worth 77 million manat in 2011.
The official exchange rate is 0.7863 AZN to $1 on Feb.8.