Insurance companies to gain opportunity of entering Azerbaijan’s money market (PHOTO)
Azerbaijan, Baku, March 15 / Trend E.Ismayilov /
Baku Interbank Currency Exchange (BBVB) and the Atəşgah Sığorta insurance company signed a contract on participation of the insurance company into the 'MONEY-MARKET' currency market of the Bourse E-system of Trades (BEST) in Baku.
The contract was signed by the head of BBVB Farhad Amirbayov and CEO of Atəşgah Sığorta, Talat Safarov.
According to the contract, the insurance company is gaining access to the wholesale money market as an equal participant in rights with the banks. BBVB will grant the new member access to the Bourse E-system of Trade and will also provide it with computing and information services.
Transactions and calculations on the money market sector are in accordance with 'the rules of temporary operations on attraction of monetary assets and their placement into BEST', 'Regulations on tender organisation and computing at BEST', 'Rules of temporary calculations on credit and deposit bargains made within BBVB's trading session in the credit section of organised money market and 'Specifications of MONEY-Market financial tools'.
As Farhad Amirbayov said at the signing ceremony, Atəşgah Sığorta became the first insurance company with which such an agreement has been signed. This means the Azerbaijani financial market is going through a new development phase and a new sector of the economy is entering the wholesale money market.
"Insurance companies are important providers of liquidity for Azerbaijani banks and no doubt will strengthen the deposit base. In turn, insurance companies are gaining possibility to allocate quickly and at the best bets temporarily available funds, while having the whole range of offers from all the Azerbaijani banks," Amirbayov said.
According to the head of BBVB, currency exchange specialists held consultations with all major insurance companies on possible participation in BEST. All insurance companies of Azerbaijan will be offered membership of the BEST money market in May this year.
According to the CEO of Atəşgah Sığorta, Talat Safarov, the insurance company is accumulating monetary assets which will be placed.
"Placement of assets is one of the major activities of the insurance company. However the domestic market still has limited tools for activities in this field and the emergence of another additional investment instrument is a serious opportunity for diversification of asset placements," Safarov said.
Working in BEST, according to him of course, is certainly very interesting for the company in terms of liquidity management, increased income and expansion of other opportunities
Baku Interbank Currency Exchange was established on June 21, 1993 as a closed joint stock company (CJSC). Its shares were distributed equally among five shareholders which are the Central Bank of Azerbaijan (CBA), the International Bank of Azerbaijan (IBA), Industrial Investment Bank, Agricultural Bank and the Savings Bank.
After the unification of the last three, its shareholders today are CBA, IBA and Kapital Bank, as well as the Agrarkredit non-bank credit organisation.
Bourse E-system of Trades is a system based on the principle of universality in provision of exchange services and today is a modern platform for the integrated management of currency risks and short term liquidity of banks. BEST allows Azerbaijani banks not only to conduct transactions in foreign currencies, but also take active loans and make placements on the organised interbank money market.
Atəşgah Sığorta insurance company was established in late 1996. Atəşgah insurance group includes Atəşgah OJSC IC and 'Atəşgah Həyat' OJSC IC.
On the results of 2012, insurance premiums of Atəşgah IG amounted to 53.5 million manat, payments - 13.2 million manat.
Atəşgah IG provides customers with insurance services on more than 20 types of insurance.
The official exchange rate on March 14 is 0.7848 AZN / USD.