The general state of the country's macroeconomic development depends on the degree of stability of the financial intermediation. Therefore, the regulation of the banking sector has special significance. Such issues as consolidation and restructuring of banks, the optimization of the banks arise to create more healthy banks, to develop the infrastructure of the financial markets and to expand the services.
The financial stability in Azerbaijan includes the following: modification of the control measures and bank supervision of Basel III based standards, the increase in the quality of bank capital and assets, the quality of accounting and reporting, limitation of the risk level.
The banking system of the country has sufficient liquidity. For example, in 2011 the growth of the population's deposits in Azerbaijani banks amounted to 21 percent, the loan portfolio - 19 percent, the share of liquid assets in total volume of assets - 18 percent. The capital adequacy is 16 percent, while the share of overdue loans in total volume of loan portfolio - 6.3 percent.
The banks' main challenge is to finance the modernization of the country's economy. The banks must be modernized. There must be the sufficient volume of assets. The corporate governance must be improved. There are 44 banks in Azerbaijan.
According to the Central Bank of Azerbaijan's decision (CBA), a mandatory reserve ratio of the banks' liabilities in manat increased from 2 to 3 percent in early December 2011. The rate of mandatory reserve ratio of the banks' liabilities in foreign currency was increased by CBA from 2 to 3 percent in May 2011.
Currency market and manat rate
The CBA exchange rate policy depends on the total macroeconomic situation in the country. The challenge is to avoid strengthening of the real national currency rate. If the real exchange rate of manat is strengthened, the trade terms of non-oil sector exporters deteriorate. If a stable exchange rate is preserved, the terms also remain stable. Therefore, the exchange rate policy is one of the components of economic diversification, the increase in the export potential of the country. The CBA main task is to prevent strengthening of real manat rate, rather than nominal.
According to the governmental forecasts, the average rate of national currency compared to the U.S. dollar per year till 2015 will remain unchanged - 0.79 manat, as in 2011.
The government preserves stability with respect to the forecast of the dollar rate. It predicts a gradual strengthening of the manat rate: in 2012 - by 0.26 percent, in 2013 - by 2.77 percent, in 2014 - by 1.68 percent and in 2015 - by 0.41 percent.
The national currency rate compared to the dollar rate has been slowly strengthened since September 2010. During the year the manat rate compared to the U.S. currency strenthened by 1.64 percent. As of late December, it was 0,7865 AZN / USD. In 2011, the dollar dropped by 1.4 percent.
The manat rate strengthening has started compared to the euro since January 2010.
During 2011 the national currency rate increased compared to the European currency by 3.6 percent.
The Central Bank completely abandoned the use of the dual currency (dollar / euro) basket while determining the exchange rate of manat. It has passed to bilateral (manat / dollar) exchange rate targeting since January 10, 2011. The dual currency basket has been used in Azerbaijan since March 2008. The CBA explained the abandonment of this mechanism by the recent intense volatility of the rate of the leading currencies and goals of maintaining the stability of the currency.
Macroeconomic analyzes show that bilateral targeting of dollar / manat rate in the current terms is most clearly consistent with the CBA objectives, in particular with a view to influence the rate of inflation. This mechanism will also allow the CBA in the long term prospect to pass to the regime of freely floating exchange rate.
Many countries actively stimulate exports and economic growth by reducing the value of the national currency. However, the CBA thinks it wrong to link these measures only through exchange rate policy. One can only make a contribution to these processes through the exchange rate policy. The exchange rate policy pursued by the CBA in accordance with the structure of the country's economy, aims at increasing exports and accelerating the economic growth, the CBA.
The draft of the long-term strategy of Azerbaijan's economic development for 2011-2025, prepared by the Ministry of Economic Development, includes the plans to pass to free floating of the national currency amid the flexible exchange rate policy. The average annual change in the nominal exchange rate of manat is projected at 1 percent. As of 2009, the national currency rate strengthened by 1.8 percent, in 2010 - by 0.6 percent, since early 2011 - by 1.4 percent.
Amrahbank joint-stock commercial bank led five banks - the leading operators of the stock market on the basis of trades of currency section USD / AZN_TOD in 2011 with a 35.16 percent stake in the Baku Interbank Currency Exchange.
ASB, International Bank of Azerbaijan, Xalq Bank and Pasha Bank are among the leading dealers of organized currency market.
There is a list of banks - leading operators of the stock market in December 2011 *
|
banks |
in % FROM TOTAL VOLUME |
|
Amrahbank |
35,16% |
|
ASB |
25,65% |
|
International Bank of Azerbaijan |
17,54% |
|
Xalq Bank |
6,78% |
|
Pasha Bank |
6,57% |
*the data do not include the transactions of the Central Bank of Azerbaijan
In total, 13 banks took part in the trades of currency section of the BBVB in December 2011. In accounting month in "Bourse E-System of Trades" (BEST) 44 trading sessions were conducted and 50 transactions were registered. The total volume of trades of currency section in accounting month on USD/AZN has made 201.606 million manat or 256.590 million in dollar equivalent.
The total trading volume in currency increased by 128.91 million manat in the reporting month or 2.8 percent compared to the indices of November.
The average daily turnover in "Bourse E-System of Trades" on USD/AZN reached approximately $ 5.832 million in December, then that the average volume of each transaction has made $ 5.132 million.
As of 2011 the total volume of electronic trading with foreign currencies at BBVB was 1.01 billion manat. The volume of exchange trading exceeded the turnover of 2010 by 300 million manat or 30 percent.
The total trading volume of U.S. dollar in the Bourse E-system of trades (BEST) amounted to 993.549 million manat ($1.259 billion).
The trading volume in EUR / AZN in 2011 amounted to 16.336 million manat (14.410 million euros). About 484 trading sessions were conducted in the BEST system last year. About 23 banks took part.
The exchange rate of national currency on USD / AZN_TOD in the reporting month amounted to 0.7857 per dollar. The average rate of the dollar compared to manat was 0.7857 manat to the dollar in December compared to 0.7861 manat as of November 2011.
Monetary market of Azerbaijan
The CBA's important task is to govern the money supply at an adequate level of macroeconomic and financial stability in terms of a continuous growth of foreign exchange reserves and high liquidity of the banking system.
The Central Bank of Azerbaijan (CBA) noted the increase in money supply (M2) (cash in circulation (outside banks) and remainders in the domestic currency on accounts of non-financial organizations, financial (excluding credit) organizations and physical entities) by 32.5 percent as of 2011 compared to 2010.
So, as of Jan. 1, 2012, the rate of M2 was 10.997.2 billion manat compared to 9.991.9 billion manat as of early December 2011 and 8.297.5 billion manat as of Jan.1, 2011.
The amount of cash money supply (M0) as of Jan. 1, 2012 hit 7.158.2 billion manat compared to 6.529.4 billion manat as of early December 2011 and 5.455.8 billion manat as of Jan.1, 2011.
As of early January 2012, Broad Money Supply (M3) totaled 13.903.2 billion manat compared to 12.830.7 billion manat in early December 2011 and 10.527.5 billion manat as of Jan.1, 2011.
The transaction money (M1) amounted to 8.824.8 billion manat as of early Jan. 2012 compared to 8.027 billion manat as of early December 2011 and 6.718.9 billion manat as of Jan.1, 2011.
Parameters of monetary market, in bln manat
|
Amount as of Jan. 1, 2012 |
|
|
Money mass in extensive understating (М3) |
13903,2 |
|
Money mass on manat (М2) |
10997,2 |
|
Cash in manat (М0) |
7158,2 |
|
Non-cash in manat |
3839,0 |
As of January 1, 2012, the expanded monetary base amounted to 8.489.4 billion manat in Azerbaijan. According to the CBA, the annual monetary base increased by 30.2 percent.
As of December 1, reserve money in the country amounted to 7.494.4 billion manat, as of January 1, 2011 - 6.520.9 billion manat.
As of Jan. 1, 2012, the monetary base in manat amounted to 8.275.3 billion manat compared to 7.417.4 billion manat as of Dec. , 2011, 6.397.1 billion manat as of Jan. 1, 2011.
During the reporting period, cash in circulation was equal to 7.658.5 billion manat, while as of December 1, 2011 this figure amounted to 6.937.2 billion manat, as of January 1, 2011 - 5.793.2 manat.
The bank reserves were equal to 826.4 million manat (542.9 million manat, 725.5 million manat, respectively).
The ratio of the mass of cash in circulation to the money base amounted to 90.2 percent during the reporting period compared to 92.6 percent as of Dec. 1, 2011, 88.8 percent as of early 2011.
Credit market of Azerbaijan
Azerbaijani banks increased lending to the Azerbaijani economy by 8.59 percent.
As of early Jan., the banks delivered loans totaling 9.950.3 billion manat (including 6.426.5 billion manat in national currency (64.6 percent) in national currency and 3.523.8 billion manat in hard currency) 35.4 percent.
As of early December, the figure was equal to 9.852.8 billion manat (6.271.6 billion in national currency and 3.581.1 billion manat in hard currency), and as of January 1, 2011 - 9.163.4 billion manat (5.865.3 billion manat and 3.298.1 billion manat).
Of the total portfolio, loans worth 633.8 million manat (6.4 percent) were overdue compared to 636.7 million manat as of Dec.1, about 492.9 million manat as of Jan.1, 2011. Statistics of overdue loans does not include similar loans of non-bank credit institution Aqrarkredit.
Short-term loans as of early Jan. 2012, amounted to 3.051.2 billion manat (including overdue loans worth 326.2 million manat) compared to 3.093.9 billion manat (including overdue loans worth 326.4 million manat) as of Dec. 1, about 2.567.1 billion manat (239.2 million) as of Jan.1, 2011.
The amount of short-term loans increased by 18.86 percent per year. As of late 2011, 34.5 percent of short-term lending fell to hard currency.
Long-term loans amounted to 6.899.1 billion manat (including 307.6 million manat overdue loans) compared to 6.758.9 billion manat (310.3 million overdue loans) as of Dec. 1, 6.596.3 billion manat (253.7 million manat) as of Jan. 1, 2011. The amount of long-term loans increased by 4.6 percent per year. As of the end of 2011, 35.85 percent of long-term lending fell to hard currency.
As of early January 2012, the only state bank of the country (the International Bank of Azerbaijan) granted loans totaling 3.300.0 billion manat with a specific weight of 33.2 percent (increased by 0.85 percent in December), and private banks - 6.398.8 billion manat with a specific weight of 64.3 percent (increasing by 1.1 percent in December). The remaining 2.5 percent fall to the share of non-bank credit organizations, which received loans worth 251.5 million manat.
The loans given to the population in the Azerbaijani regions hit 1.271.6 billion manat as of 2011 or 12.8 percent of the total loan portfolio of banks.
In Baku, the figure was 8.678.6 billion manat, where the loans in national currency hit 5.486.4 billion manat and foreign currency - 3.192.2 billion manat.
The average interest rate in the country as of 2011 was 16.3 percent, Baku - 15.9 percent.
The lending volume on Absheron economic region totaled 289.0 million manat at an average rate of 17.4 percent, Aran - 277.7 million manat 22.4 percent, Mountain-Shirvan - 33.5 million manat 20.2 percent, Ganja -Gazakh - 280.2 million manat 21.8 percent, Guba-Khachmaz - 104.1 million manat 20.8 percent, Lankaran - 121.0 million manat 24.7 percent, Sheki-Zagatala - 83.6 million manat 22.8 percent, the Upper Karabakh - 11.8 million manat 20.3 percent, Kalbajar-Lachin - 2.1 million manat 16.8 percent, Nakhchivan - 68.6 million manat 11.7 percent.
Most of all loans are granted to households in Azerbaijan. According to the CBA, as of Jan. 1, 2012 households received 33.3 percent or loans worth 3.315.0 billion manat.
The sphere of trade and services (28.6 percent or 2.844.4 billion manat) ranks second, the construction sector of real estate (8.8 percent or 875.3 million manat) ranks third.
About 5.9 percent or 582.9 million manat accounted for industry, agriculture and processing - 4.7 percent(466.7 million manat), 4.1 percent or 409.7 million manat - transport and communications, energy natural resources - 2.9 percent (289.7 million manat), rest areas - 0.5 percent or 46.8 million manat of loans.
The Central Bank of Azerbaijan sees a need to reduce the bank interest rates on loans. The measures must be taken to develop the non-oil sector, to diversify the economy of the country and to reduce the cost of capital for small and medium enterprises. One of sources of this capital are bank loans.
In 2011, there were no significant changes in nominal interest rates on loans and deposits , as opposed to the real rate. Thus, the average interest rate on deposits was 11 percent, for loans - 16-17 percent.
As of January 1, 2012 the average interest rate on credits in national currency - manat in Azerbaijani banks was 16.27 percent compared to 16.24 percent as of December 1, 16.37 percent as of January 1, 2011.
According to the CBA, the average rate on bank loans in foreign currency amounted to 16.79 percent. As of December 1, 2011, the figure was 16.34 percent, as of January 1, 2011 - 17.31 percent.
The average rate on bank lending to legal entity in national currency amounted to 14.53 percent compared to 14.48 percent as of Dec. 1, 2011 and 14.4 percent as of Jan. 1, 2011. The average rate on bank loans in foreign currency was 14.3 percent, 13.72 percent, 14.2 percent respectively.
The average rate on bank lending to physical entities in national currency amounted to 19.06 percent as of early Jan. 2012. The figure hit 19.09 percent the previous month, on Jan. 1, 2011 - 19.84 percent.
The average rate on bank credit for a physical entity in hard currency amounted to 22.90 percent, 22.98 percent, 23.73 percent respectively.
Banking sector of Azerbaijan
As of Jan. 1, 2011, the total amount of deposits of physical and legal entities in Azerbaijani banks amounted to 6.639.3 billion manat.
Including deposits of non-residents and state agencies, the figure was 9.447.0 billion manat, which is more by 23.9 percent compared 2010.
As of Dec.1, 2011, the deposit base of Azerbaijani banks hit 8.892.8 billion manat, as of Jan., 2011 - 7.625.8 billion manat.
As of Jan.1, 2012, the volume of physical entities' deposits in banks in Azerbaijan amounted to 4.119.8 billion manat, which is 36 percent more compared to the same period of 2011 (3.029.8 billion manat).
There was a situation when cash deposits of Azerbaijan's population in the national currency exceeds cash deposits in foreign currency in December, as well as in November and August.
Some 2.281.6 billion manat (55.4 percent) of the population were placed in the national currency - manat, 1.838.1 billion manat - in hard currency.
The volume of physical entities' deposits in banks in Azerbaijan amounted to 3.660.7 billion manat, of which 1.837.7 billion manat (50.2 percent) were placed in the national currency - manat, 1.823 billion manat - in freely convertible currency, in November - 1.970.1 billion manat (51.4 percent) were placed by the population in the national currency - manat, 1.859.9 billion manat - in hard currency.
About 76 percent of the population's deposits are in accounts of private banks.
Deposits of the population, drawn to the banking system from the Azerbaijani regions (areas of the country, except for Baku), as of January 1, 2012 amounted to 327.5 million manat or 7.9 percent of total volume of bank deposits.
The volume of deposits on Baku amounted to 3.792.1 billion manat, while the deposits in national currency hit 2.038.9 billion manat, currency - 1.753.2 billion manat.
The average interest rate for the country during the reporting period amounted to 8.9 percent, Baku - 9.0 percent.
The amount of deposits on Absheron economic region amounted to 107.1 million manat, with an average rate of 9.6 percent, Aran - 53.6 million manat at 4.9 percent, the Mountain-Shirvan - 6.7 million manat at 7.3 percent, Ganja -Gazakh - 63.0 million manat at 7.5 percent, Guba-Khachmaz - 25.7 million manat at 7.1 percent, Lankaran - 23.1 million manat at 7.5 percent, Sheki-Zagatala - 20.8 million manat at 6.2 percent, the Upper Karabakh - 5.7 million manat at 4.4 percent, Kalbajar-Lachin - 1.4 million manat at 6.2 percent, Nakhchivan - 20.4 million manat at 3.3 percent.
In 2011 the volume of legal entities' deposits amounted to 2.519.5 billion manat, of which 677.9 million manat were invested in the national currency, 1.841.6 billion manat - in foreign currency.
The volume of deposits of legal entities in 2011 increased by 15.7 percent compared to 2010 (2.177.0 billion manat).
The average rate on deposits in manat as of January 1, 2012 was 10.62 percent compared to 10.65 percent as of December 1, 2011, 11.11 percent as of January 1, 2011.
The average rate on deposits in foreign currency amounted to 11.11 percent compared to 11.27 percent and 11.64 percent respectively.
As of January 1, 2012, the average rate on physical entities' deposits in manat was 11.76 percent compared to 11.10 percent as of early December 2011 and 11.79 percent as of early 2011. The average rate on physical entities' deposits in foreign currency amounted to 11.27 percent compared to 11.39 percent and 12.27 percent respectively.
As of early January 2012, the average rate on legal entities' deposits in manat was 5.60 percent compared to 6.15 percent as of December 1, 2011 and 6.19 percent as of January 1, 2011. The average rate on corporate clients' deposits in foreign currency was 7.02 percent compared to 8.02 percent and 6.27 percent respectively.
According to the Azerbaijani Central Bank, in 2011 the assets of banks increased to 14.259.18 billion manat compared to 12.768.35 billion manat as of early early 2011. In this case, the total liabilities of the banking sector hit 11.831.71 billion manat.
The basis of the banking sector's assets consisted of the loans to the clients. The figure hit 9.006.4 billion manat, investments (1.440.8 billion manat) and funds on correspondent accounts (1.336.4 billion manat). Other 567.7 million manat fall to the credits to the financial sector. The structure of liabilities includes the deposits (6.673.4 million manat as of 2011). The loans and deposits of the financial sector amounted to 4.352 million manat.
The capital of the Azerbaijani banks continued increasing in 2011, although there are banks in the banking sector, which do not meet the minimum regulatory capital requirements (10 million manat).
According to the Azerbaijani Central Bank, as of early 2012, about 2 of 44 banks had capital less than 10 million manat. The capital in one of them was less than 5 million manat.
In general, the Azerbaijani banks' capital in 2011 increased from 2.152.4 billion manat to 2.427.5 billion manat. The assets of the banking sector hit 14.259.18 billion manat.
According to the Azerbaijani Central Bank, in 2011 the banks' profit before taxation amounted to 160.82 million manat compared to 140.07 million manat in 2010. At the same time net profit of banks in 2011 amounted to 141.37 million manat compared to 120.27 million manat in 2010.
According to the CBA, in 2011, about 31 banks worked with net profit at 187.63 million manat, in 2010 - 32 banks (165.84 million manat). About 7 banks had net loss worth 46.26 million manat in 2011, in 2010 - 13 banks (45.57 million).
It should be noted that in 2011 the banks have a record interest (1.099.76 billion manat) and non-interest income (320.98 million manat).
The sector of the Azerbaijani non-banking credit organizations (NBCO) renewed its indices.
According to the Azerbaijani Central Bank, in 2011 the total capital of NBCO reached 45.48 million manat compared to 37.4 million manat a year earlier, the assets - 315.54 million manat compared to 251.31 million manat in 2010. Even their branch network increased from 69 to 86 branches.
The credit unions increased their capital to 11.58 million manat, and assets - up to 38.23 million manat. NBCO created by international humanitarian organizations reached the growth of the capital to 15.36 million manat, and assets - to 251.41 million manat.
Stock market
The total turnover of transactions on all instruments at Baku Stock Exchange (BSE) for 2011 totaled 8.43 billion manat, increasing by 3.78 times compared to the same period of 2010.
The corporate securities market increased by 2.4 times compared to 2010. The figure hit 1.712 billion manat. This is stipulated by the increased volume of transactions in corporate bonds by 2.7 times.
The state securities market increased by 4.4 times. The figure hit 6.7 billion manat.
It was affected by a sevenfold increase in repo transactions and 2.85-fold increase in transactions with the Central Bank notes. The number of transactions in these instruments increased by 1.9 times and 1.7 times respectively.
Comparative table on the results of trades of Corporate Securities at BSE (January- December 2011)
|
Market segments |
Dec. 31, 2011 |
Dec. 31, 2010 |
Percentage ratio |
||
|
Volume of transactions, AZN |
Number of deals |
Volume of transactions, AZN |
Number of deals |
||
|
Corporate bonds- (placement) |
198 871 740,45 |
94 |
101 379 141,25 |
104 |
196,17% |
|
Corporate bonds - (secondary market) |
530 327 302,36 |
119 |
164 596 985,23 |
112 |
322,20% |
|
CBs Total |
729 199 042,81 |
213 |
265 976 126,48 |
216 |
274,16% |
|
Stocks - (placement) |
974 388 229,10 |
137 |
425 794 982,96 |
1 835 |
228,84% |
|
Stocks - (secondary market) |
8 353 613,96 |
3 424 |
15 554 689,45 |
2 065 |
53,70% |
|
Stocks Total |
982 741 843,06 |
3 561 |
441 349 672,41 |
3 900 |
222,67% |
|
CS Market Total |
1711 940 885,87 |
3 774 |
707 325 798,89 |
4 116 |
242,03% |
Comparative table on the results of trades of Government Securities at BSE (January- December 2011)
|
Market segments |
Dec. 31, 2011 |
Dec. 31, 2010 |
Percentage ratio |
||
|
Volume of transactions, AZN |
Number of deals |
Volume of transactions, AZN |
Number of deals |
||
|
GB - (AR MF) (placement) |
239 076 694,36 |
133 |
359 507 799,23 |
150 |
66,50% |
|
GB - (AR MF) (secondary market) |
41 570 251,84 |
41 |
96 647 098,48 |
54 |
43,01% |
|
GB Total |
280 646 946,20 |
174 |
456 154 897,71 |
204 |
61,52% |
|
Notes (AR CB) - (placement) |
642 520 868,19 |
279 |
223 589 276,78 |
163 |
287,37% |
|
Notes (AR CB) - (secondary market) |
12 552 213,77 |
6 |
5 564 936,87 |
2 |
225,56% |
|
Notes Total |
655 073 081,96 |
285 |
229 154 213,65 |
165 |
285,87% |
|
Repo operations |
5 781 971 756,98 |
1 309 |
837 669 129,33 |
705 |
690,25% |
|
GS Market Total |
6 717 691 785,14 |
1 768 |
1 522 978 240,69 |
1 074 |
441,09% |
The National Depository Center (NDC) under the Azerbaijani State Securities Committee registered 253 stock transactions on share purchase-sale to the amount of 80.7 million manat at a bargain price, 78.7 million manat - at face value in December 2011.
In December, the depository center registered 210 off-exchange transactions to the amount of 9.98 million manat at face value, and 15 transactions on an additional issue worth 947.2 million manat in nominal value. This was a record amount over the last two years.
In December, the volume of transactions exceeded the off-exchange transactions by almost 8 times, and the number of transactions exceeded the off-exchange transactions by 20.5 percent.
The National Depository Center has the securities to the amount of 5.43 billion manat.
NDC was established on September 18, 1997. The founder and owner of the center's shares was the Azerbaijani State Property Committee. After establishing the State Securities Committee, the NDC shares were transferred to its property. In this regard, the NDC was re-established by the State Securities Committee on September 8, 1999 and passed the state registration on September 17, 1999.
According to the Azerbaijani State Securities Committee, there was a revival in all segments of the securities market in Azerbaijan in 2011. The volume of transactions in the market increased by 3.8 times.
During 2011 the number of transactions in the securities market of the country increased by 23 percent, the volume of transactions was 3.8 times and amounted to 8.862 billion manat.
In 2011, the corporate securities market in the country increased by 2.7 times compared to 2011 and amounted to 2.144 billion manat with an increase in the number of operations by 13 percent. About 48 percent of the total volume of transactions with corporate securities fall to the shares, 52 per cent - on corporate bonds.
During the reporting period, the volume of transactions with shares doubled and reached 1.029 billion manat, and the number - by 14 percent. The transactions on the corporate bond market increased by 3.7 times, amounting to 1.115 billion manat.
During the reporting period, the primary market for corporate debt quadrupled and hit to 584.7 million manat.
During the year, the volume of transactions in the market of state securities increased by 4.4 times and amounted to 6.717 billion manat, and their number - by 1.6 times. About 4 percent of the total volume of the state securities market fall to the share of state bonds of the Ministry of Finance, central bank notes - 10 percent, repo transactions - 86 percent.
In 2011, the number of transactions with the notes of the Central Bank increased by 73 percent, the volume of transactions - by 2.9 times, amounting to 655 million manats. This year, primary and secondary markets of state bonds reduced by 38.5 percent. There was an increase in yield on various long-term bonds. The number of repo - operations for 2011 increased by 86 percent, volume - by 6.9 times, amounting to 5.781 billion manat. During the reporting period, 99 percent of the repo transactions fall to the Central Bank notes, one percent - state bonds.
A high volume of supply of bonds in foreign currencies was recorded in the Azerbaijani securities market in 2011.
The total volume of transactions on bonds in foreign currencies amounted to 402.4 million manat in the market, or 36 percent of the total amount of corporate debt instrument market.
A new instrument - convertible bonds in foreign currencies was put on the market during the reporting period.
During the reporting period, the committee received 286 complaints and 35 complaints of 454 joint stock companies' violated rights. As a result, the administrative penalties were imposed to 184 companies and 154 were instructed to eliminate the violations.
Moreover, in 2011 the Azerbaijani State Securities Committee received 464 reports on the activity conducted in 2010. The administrative fines were applied to 350 companies.
During the reporting period, a draft of the rules on securities placed by issuers of the Azerbaijani Republic abroad was prepared.
According to the State Securities Committee, the number of professional participants of the securities market in the country, as of late 2011, hit 33 compared to 37 in 2010. About 13 licenses were issued for brokerage activity, 11 - for dealer activity, two - y the registrar activity, one - on the activity of the stock exchange, two - the governance of the Central Bank, one - clearing activity, 3 - depository activity.