Value of mortgage bonds must form in accordance with rates at money market,' Farhad Amirbayov
The Azerbaijani Mortgage Fund (AMF) considers perspectives of its transactions at money market. It was said at a meeting of market-maker banks and the Baku Interbank Currency Exchange (BICE), Farhad Amirbayov, the head of BICE, told Trend.
We would like the rates (indicators of BakIBOR and BakIBIT), declared and formed on 8 instruments in the trade system of the exchange, to be indicative for all participants of the financial market, as well as any organization related to financial market. It may be a criterion at determination of money-loan policy and business, Amirbayov stressed.
In accordance with the tax legislation, interest rates are considered as criterion at calculation of tax base, but the tax legislation envisages market rate, which is under formation. Therefore, NBAs bank-rate is taken into consideration. The bank-rate of NBA comprises 9%, while the tree-month bank-rate of BakIBOR makes up 15.04%. The difference is approximately 70%. Therefore, indicator of BakIBOR is regarded as more market and objective.
Amirbayov hopes that AMF will also orientate to these rates, as they are determined by big commercial banks of the country. According to Amirbayov, there is deep mutual relation between stock and loan market.
BICE analyzed the data for 2005 on balance of market-maker banks. The observations showed that there were not interbank loans exceeding a year practically. It is natural; banks grant loans to each other for short terms. Value of mortgage bonds may fluctuates depend on the state at money market. Price fluctuations for bank bonds must form in accordance with the rates, forming at this market, Amirbayov stressed.