Azerbaijan, Baku / Trend corr I. Khalilova / There are plans to expand the securities market in Azerbaijani regions in the near future. The Chairman of the State Securities Committee at the Azerbaijani President's Administration, Gunduz Mammadov, reported on 28 June that the State Committee has already appealed to open a Ganja branch of the State Committee and National Deposit Centre.
According to Mammadov, the small scale of the securities market is explained by the lack of investment funds and non-state pension funds and industrial securities. "Insurance companies also take a listless part in the market and we have intentions to solve these problems in the near future," he said.
Some 2,000 joint-stock companies were established in Azerbaijan during two programs on property privatization. In 2004, sixty-two issuances of stock in the amount of AZN 92mln were implemented, while in 2006 there were 135 issuances in the amount of AZN 341mln. During five months of 2007 66 issuances of stock in the amount of AZN 203mln were held, while during the same period of 2006 there were 61 issuances in the amount of AZN 110mln. So, the increase made up 8.4%. Increase has also appeared in the bonds market. Five months of 2007 had nine issuances in the amount of AZN 20mln, while the same period of 2006 had seven issuances in the amount of AZN 15.1mln. The average yield comprised 14% a year.