BAKU, Azerbaijan, May 25
By Zeyni Jafarov - Trend:
The likelihood of a decrease in interest rate in Azerbaijan becomes very low amid an increase in pro-inflationary expectations, Seymur Ibadov, head of the research and investment consulting department of Unicapital OJSC, told Trend.
Ibadov said that in accordance with the latest decision of the Central Bank of Azerbaijan (CBA), the inflation level announced at the latest meeting varies within 4 percent, which is very close to the average rate of the corridor corresponding to the inflation percentage announced by the CBA.
"While tracking the changes in inflation rate and other global, regional and economic factors, the CBA decided to keep the interest rate at a stable level," he said.
As for the current state of the capital market, the company’s representative noted that following the results of the recent auction on the placement of medium-term bonds of the Azerbaijani Ministry of Finance at the stock exchange, there was a noticeable excess of demand oversupply.
So, 13 investors submitted 32 orders, in which the range of profitability varied from 6.2-12 percent. As a result, 60 million manat ($35.3 million) was placed with an average yield of 6.49 percent.
Ibadov added that the envisaged volume of orders amounted to 40 million manat ($23 million) while the total amount of applications at nominal prices - about 228 million manat ($134.1 million) at the planned auction for the placement of medium-term bonds of the Azerbaijani Ministry of Finance.
In general, the Ministry of Finance of Azerbaijan plans to issue 17 million bonds for a total of 1.7 billion manat ($1 billion) for 2021.
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