Volume of state securities in 2006 may amount 1,3 trillion AZM

Business Materials 29 December 2005 14:04 (UTC +04:00)

The total volume of transactions on the state short-term bonds in 2006 is expected at the level of 650 billion AZM, the Finance Minister of Azerbaijan Avez Alekperov told Trend, noting the International Monetary Fund (IMF) is not confident that the Finance Ministry will be able to place this emission.

В"I am sure, we will manage this volume, as we want to operate very actively at the securities market and auctions on the state short-term bonds (SSTB) are planned to be held weekly”, the Minister noted. The Ministry plans to place both the two-, three- and six-month state bonds.

According to Alekperov, the National Bank of Azerbaijan (NBA) plans also, in its turn, to place in 2006 notes for 650-700 billion AZM.

Increase of securities volume in circulation is one of the tools to keep back the inflation tempo growth. In this regard, their placement needs to be provided which is possible through scheduling which will enable to issue notes and SSTB in different periods. Such schedule has been set by a special commission, established under the IMF recommendations aimed at resolving all issues on the state securities market development.

International Finance Institutions (IMF in particular) also recommended the government to develop the state securities market, although the Finance Ministry has no special need in the SSTB issuing.