Azerbaijan recommended to diversify investment instruments

Business Materials 17 October 2017 13:49 (UTC +04:00)

Baku, Azerbaijan, Oct. 17

By Azad Hasanli – Trend:

Securities market creates very good conditions for increasing the liquidity of Azerbaijan’s financial sector, said Vusal Gasimli, executive director of the Center for Analysis of Economic Reforms and Communication.

He was addressing a conference titled “Capital Markets of Azerbaijan. Opportunities and Prospects” in Baku on Oct. 17.

“Currently, the level of liquidity only in the banking sector is about 5.2 billion manats. For lending to the economy, banks could use the securities market on a par with the current "deposit-credit" algorithm [when a deposit of one client is used as a credit for another client],” Gasimli said.

He reminded that strategic roadmaps provide for establishment of a “market of investors”. In this regard, it is necessary to diversify investment instruments, according to Gasimli.

“We should have many funding sources, but along with this, we also need to diversify the investor base. This is also a very important point. We need to create directions for investors. For example, institutional investor could finance global projects for economic development, and retail investor could invest in bonds.”