The rate of yield on state securities should be above the Rate Of Inflation (ROI).
Following the announcement, the chairman of the State Commission on Securities, Heydar Babayev explained that the above viewpoint had been reflected in the general concept of the development of securities market.
At the latest auction of short-term T-bills, bids have been presented in the yielding range of 10.47 to 11.5 per cent, with the average-weighted rate floating at 10.59 per cent. Meanwhile, since January through May the rate of inflation has surged 13.6 per cent from the year-ago figure.
Following the revision of the 2005 state budget, the Government has approved to cover the incremental gap through the issue of 115 billion manats (24.3 million U.S. dollars) of short-term T-bills.
According to Bayayev, the annual turnover of the domestic securities market should amount to 500-600 billion manats (105 to 127 million U.S. dollars).