BAKU, Azerbaijan, May 25. The Central Bank plans to introduce the equivalent of a bank deposit insurance mechanism for investment companies, Deputy Head of the Market Analysis Department at Gazprombank Gulnara Khaidarshina said, Trend reports.
“The Central Bank of Azerbaijan has implemented a number of measures to develop the local market and reduce investment risks over the past 12 months. These measures include improving the legislative framework and infrastructure development. Regulatory measures were taken jointly with the Government, including the introduction of a 10 percent tax on income from deposits of individuals. Previously, this tax was temporarily suspended every year,” Khaidarshina said.
“There is no tax on income from investments in bonds of individuals at the same time. This rule applies only to bonds placed on the market and does not affect off-exchange transactions," she added.
According to Khaidarshina, the CBA has also lowered the requirements for reserves for bank investments in stocks traded on the Baku Stock Exchange.
"The reserve rate is 0 percent for investment securities issued by the Ministry of Finance and 1 percent for bonds of other local issuers. However, investments in securities of foreign issuers with a low investment rating require a reservation of 25 percent. The CBA plans to introduce new prudential supervision measures in overinvestment companies in order to increase their reliability and reduce risks for investors," she said.