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Azerbaijan shares data on government securities in circulation

Finance Materials 1 February 2023 18:06 (UTC +04:00)
Azerbaijan shares data on government securities in circulation
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, February 1. The amount of government securities in circulation in Azerbaijan exceeded 4 billion manat ($2.35 billion) as of January 1, 2023, said Azerbaijani Finance Minister Samir Sharifov at the board meeting of the Ministry of Finance, Trend reports via the ministry.

The minister noted that important steps were taken in Azerbaijan in 2022 to support the development of local financial markets as one of the country's main strategic goals.

"Thus, the amount of government securities in circulation increased by 3.4 billion manat compared to July 1, 2018, and reached 4.2 billion manat by the beginning of 2023. During this period, the ratio of government securities in circulation to GDP increased from one percent to 3.1 percent," said the minister.

"While only short-term (1 year) and medium-term (2 years and 3 years) government securities were placed during the approval of the strategy [Medium and long-term strategy for the management of public debt in the Republic of Azerbaijan], in the last period, the placement of longer-term, that is, government bonds with a maturity of 5 and even 7 years, was ensured, thereby increasing the average maturity of government bonds significantly during the implementation of the strategy. In addition, with the involvement of new institutional and corporate investors, as well as individuals, the investor base of government bonds has been expanded," he added.

The turnover of securities on the Baku Stock Exchange (BSE) exceeded 14.9 billion manat ($8.7 billion) from January through December 2022, which is 2 percent less than the same period the previous year.

The government securities amounted to 55.61 percent of the turnover or 8.31 billion manat ($4.8 billion).

The turnover of corporate securities on the stock increased by 93 percent compared to the period from January through December 2021 and amounted to 1.57 billion manat ($920 million), the repurchase agreement (REPO) transactions on corporate securities totaled 2,694 percent - to 101.4 million manat ($59.5 million).

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