Review of monetary sector in Azerbaijan (2015)

The Board of the Central Bank of Azerbaijan (CBA) considered the outcome of 2015 at the enlarged meeting and assessed 2015 as successful despite the twofold devaluation of the manat.

According to the CBA, CBA Chairman Elman Rustamov assessed 2015 as positive.

The assets of banks at the end of 2015 amounted to 35 billion manats, credit investments in the economy of the country - 21 billion manats, 75 percent of which fall to the share of business loans.

CBA also stressed a 13 percent increase in the number of transactions in the national payment system. The turnover exceeded the volume of GDP by 2.4 times.

CBA has reduced the amount of the capital adequacy ratio from 12 to 10 percent and the capital adequacy ratio of the Tier I banks - from 6 to 5 percent since December 29, 2015.

This is envisaged by the changes in the "Bank capital settlement rules and its adequacy".

The CBA also reduced the level of "leverage" (a tool connecting the growth of assets to the growth of the capital) from 6 to 5 percent.

The CBA has restored the "leverage" norm since February 2011 [which was canceled in 2003]. Along with the balance sheet assets, off-balance sheet assets were included in the settlement procedure. The requirement was set at 8 percent [compared to 6 percent before the cancellation] as the "leverage" norm was intended to limit the banks' strong growth. While introducing the "leverage" norm, the CBA's main objective is to ensure the management of capital, liquidity and credit risks at a safe level.

"This tool allows controlling the steady growth at a good capital base, growing on a sound base, controlling the level of capital, achieving a good correlation of assets and capital growth," CBA Director General Rashad Orujov told Trend earlier. "This is very important. This is a very effective tool. It is beneficial as the asset growth is supported by good capitalization. "

The foreign exchange (FX) reserves of the Central Bank of Azerbaijan (CBA) fell by $1.23 billion (19.68 percent) to $5,016.7 million in December 2015 as compared to November.

CBA's foreign exchange reserves have declined by $8,741.6 million (63.5 percent) since early 2015.

The foreign exchange reserves of the CBA have been declining since July 2014.

Earlier, the decline of the foreign exchange reserves was going on slowly (around $20-50 million). But their volume started to sharply reduce in December 2014, due to an increase in demand for dollar supply in the country.

However, the growth of foreign exchange reserves resumed in May-June 2015. In May, the Central Bank's forex reserves rose by $42.9 million (0.51 percent) compared to April, up to $8.43 billion, and by $89.4 million (1.06 percent) in June.

But, after slight growth, the reduction of foreign exchange reserves of the CBA continued.

So, the reserves declined by $ 18.7 million in July, by $1.19 billion in August, $300.7 million in September, $180.1 million in October and $589 million in November.

The foreign exchange reserves reduced due to the intervention carried out by the CBA on the foreign exchange market to keep the exchange rate of manat versus the US dollar at a stable level

Currency market and manat rate

Azerbaijan has experienced the process of devaluation of the manat twice in 2015. For the first time, CBA has refused from pegging the exchange rate of the manat to the US dollar and passed to the mechanism of the dual-currency basket that includes the dollar and euro since February 16, 2015. CBA devaluated the manat February 21. On this day, the rate of manat reduced by almost 34 percent up to 1.05 manat per dollar.

The sharp decline in oil prices in July once again increased the pressure on the exchange rate of manat and foreign exchange market. At the same time, the continuing devaluation in neighboring countries had a negative impact on the competitiveness of the national economy in the international arena. There is a need to bring the foreign exchange market and exchange rate of manat in line with oil prices in connection with the emerging conditions.

And, therefore, for the second time CBA has passed to a floating exchange rate of manat since December 21, 2015. The official exchange rate of the US dollar and the euro against the Azerbaijani manat was set at 1.5500 and 1.6850 manat respectively as of December 21. In particular, the exchange rate of the US dollar and the euro against the manat increased by 47.6 percent and 47.9 percent.

This decision was taken taking into account strengthening of the long-term shocks in the foreign economy to counterpoise the balance of payments, preserve the foreign exchange reserves in the country at a critical level and ensure competitiveness of the national economy in the international arena.

Thus, according to the CBA's decision, the manat exchange rate will be formed in accordance with the fundamental factors that determine the supply and demand on the foreign exchange market.

Azerbaijani monetary market

The CBA decision about holding the exchange rate policy February 16, 2015 based on the mechanism of the currency basket that includes dollar and euro and then the second devaluation by the end of the year, significantly affected the amount of the monetary aggregates in the country.

The money supply rate (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) decreased over twofold in December 2015 compared to December 2014.

According to the CBA report as of 2015, M2 reduced by almost 4.8 percent in December compared to the previous month.

The money supply rate (M2) amounted to 8.613 billion manat as of 2015 compared to 9.050 billion manat as of November and 17.436 billion manat as of January 1, 2015, according to the report.

The amount of cash money supply (M0) decreased by 2.13 times during a year and amounted to 4.776 billion manat compared to 10.152 billion manat as of late December 2014. M0 decreased by 7.7 percent in December 2015 compared to November.

As of December 2015, Broad Money Supply (M3) totaled 21.319 billion manat or 1.1 percent less compared to December 2014 (21.566 billion manat) and by 22.2 percent more as of late November 2015 (17.444 billion manat).

The transaction money (M1) decreased by 46.2 percent during a year and amounted to 6.897 billion manat compared to 12.830 billion manat as of December 2014 and by 1.2 percent compared to November 2015 (6.897 billion manat).

Parameters of monetary market, in billion manat:

Volume, Jan.-Dec. 2015

Money mass in extensive understating (М3)

21 318,6

Money mass on manat (М2)

8 613,1

Cash in manat (М0)

4 775,9

Non-cash in manat

3 837,2

As of January 1, 2016, the bank reserves in Azerbaijan amounted to 2.137 billion manat, which is over twofold more than in 2014 (1.013 billion manat).

The expanded monetary base in Azerbaijan totaled 7.561 billion manat as of Jan. 1, 2016.
In annual terms, the monetary base in Azerbaijan decreased by 36.3 percent. For comparison, as of December 2014, this figure was 11.867 billion manat. The monetary base increased by 7.9 percent in Azerbaijan compared to November 2015 (7.002 billion manat).

As of January 1, 2016, the monetary base in manat amounted to 6.902 billion manat versus 11.542 billion manat as of Janaury 1, 2015.

In the mentioned period, the volume of money in circulation amounted to 5.417 billion manat, while this figure was 10.846 billion manat as of Jan. 1, 2015.

The ratio of the mass of cash in circulation to the monetary base was 71.6 percent as of January 1, 2016, decreasing by 21.7 percent compared to January 1, 2015.

Azerbaijan's loan market

According to the CBA, as of January 1, 2016, the banks issued loans worth 21.72 billion manat, including 11.01 billion manat (50.7 percent) in the national currency, 10.71 billion manat (49.3 percent) in foreign currency.

This ratio hit 73 and 27 percent in January 2015, but 60 and 40 percent accordingly in January-February, 59.17 и 40.83 percent accordingly in the first quarter, 55.9 and 44.1 percent accordingly in the second quarter.

For comparison, the banks delivered loans worth 18.54 billion manat (around 13.51 billion manat in national currency and 5.04 billion manat in freely convertible currency) as of 2014.

As of December 2015, the volume of overdue loans in the loan portfolio of Azerbaijani banks amounted to 1.51 billion manat, which is 22.7 percent more than in the previous month, the report said.

According to the report, their share in the loan portfolio of the banks amounted to 6.9 percent or by 0.3 percent more than in November. The volume of bad loans increased by 54.5 percent in 2015 compared to late 2014 (976.3 million manat).

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution.

The increase in delinquencies is observed amid an increase in the loan portfolio of banks.

The banks' lending to the economy increased by over 17 percent compared to 2014 and almost 16 percent compared to November 2015.

The volume of short-term loans amounted to 5.3 billion manat (including overdue loans worth 573 million manat) as of 2015 compared to 3.93 billion manat (including overdue loans worth 391.6 million manat) a year earlier. The volume of short-term loans in the economy increased by 34.9 percent in a year.

The volume of long term loans amounted to 16.42 billion manat (including 935.5 million manat worth overdue loans) as of 2015, compared to 14.61 billion manat (including 584.6 million manat worth overdue loans) as of 2014. The volume of long term loans increased by 12.4 percent in a year.

The credit portfolio of the state banks in the country hit 7.29 billion manat with the specific weight of 33.6 percent, while private banks issued loans worth around 13.86 billion manat with a specific weight of 63.8 percent.

The remaining 2.6 percent fell to the share of non-bank credit organizations which issued 566 million manat, according to the CBA.

Azerbaijani banks stabilized the consumer lending issuance up to 8.38 billion manat in December 2015 or by 11.3 percent more than in November.

The consumer lending volume increased by 8.4 percent during a year.

The consumer lending volumes decreased after the devaluation of the manat rate [the dollar rate increased by almost 34 percent February 21].

It increased by almost 9 percent in February. The banks reduced the consumer lending volume by 1.4 percent in March, 1.2 percent in April, 1.88 percent in May, 1.97 percent in June and 1.5 percent in July.

A decline in consumer lending was 0.4 percent in November compared to October.

Nevertheless, the largest part of the total credit portfolio - 38.6 percent (as of December) accounted for the share of consumer loans.

The trade and services (14.5 percent or 3.15 billion manat) ranked second on the share in the total loan portfolio of banks. The construction and real estate sector (14 percent or 3.05 billion manat) ranked third.

Around 9 percent (1.94 billion manat) of the total volume of lending to the real sector of Azerbaijan was directed to the industry and production in December.

The share of transport and communication hit 6.7 percent (1.46 billion manat), agriculture and processing reached 2.3 percent (508.1 million manat), energy, chemistry, and natural resources - 1.5 percent (316.5 million manat).

The loans given to the population in Azerbaijan's districts totaled 3.54 billion manat as of 2015, or 16.3 percent of the banks' total loan portfolio, the CBA says.

Some 32.8 percent or 1.16 billion manat of this amount issued to the population in the regions of the country accounted for the foreign currency.

The loans worth 18.17 billion manat were delivered in Baku. Here the loans in national currency (manat) amounted to 9.5 billion manat (11.4 percent).

For comparison, Baku granted loans amounting to 15.3 billion manat in 2014. Some 11 billion manat accounted for the loans in national currency.

The average interest rate on loans throughout the country was 13.8 percent in 2015, while in Baku this index stood at 11.8 percent.

The lending volume in the Absheron economic district totaled 705.5 million manat at an average rate of 18.6 percent.

In other economic districts the lending index was as follows: Aran - 917.1 million manat at a rate of 22.1 percent, Mountainous Shirvan - 127 million manat at a rate of 22.2 percent, Ganja-Gazakh - 805.2 million manat at a rate of 18.5 percent, Guba-Khachmaz - 250.1 million manat at a rate of 21.3 percent, Lankaran - 305.2 million manat at a rate of 23.2 percent, Shaki-Zagatala - 224.8 million manat at a rate of 22.0 percent, the Upper Karabakh - 70.6 million manat at a rate of 19.3 percent, Kalbajar-Lachin - 7.2 million manat at a rate of 17.2 percent, Nakhchivan - 129.5 million manat at a rate of 14.5 percent.

The average interest rate on loans issued by Azerbaijani banks decreased in national and foreign currency in November.

The average rate on bank lending to the Azerbaijani economy in national currency amounted to 13.60 percent in December 2015 compared to 13.76 percent in November.

The average interest rate on loans hit 13.81 percent as of early 2015.

The average rate on bank lending in freely convertible currency made up 12.53 percent in December compared to 13.74 percent in the previous month.

The average rate was 14.07 percent in early 2015.

The average rate on bank lending to the legal entities in national currency amounted to 9.72 percent compared to 9.92 percent in November 2015 and 9.99 percent as of early 2015.

The average rate on bank lending to the corporate clients in freely convertible currency amounted to 8.78 in December compared to 9.99 percent and 9.18 percent accordingly.

As of December, the average rate on bank lending to physical entities in national currency amounted to 17.46 percent compared to 17.54 percent in November 2015, 18.53 percent in early 2015.

The average rate on bank loans to the individual customers in freely convertible currency was 20.72 percent compared to 21.26 percent and 21.52 percent in early 2015.

Mortgage lending

The Azerbaijan Mortgage Fund (AMF) under the CBA delivered loans amounting to 97.2 million manat in 2015, the CBA's report said.

The loans worth 6.8 million manat were delivered through AMF in December, which is 20 percent less than in December 2014.

The total amount of refinancing the loans issued by the banks earlier amounted to 113.6 million manat in 2015.

Some 50 million manat of 50 million manat envisaged for 2015 have been allocated for social mortgage. Some 4.6 million manat were transferred from the state budget to the AMF in December 2015.

The average amount issued by AMF authorized banks is 40.873 manat (this figure amounted to 40.206 manat in December 2014), the average term of loan issue - 280 months (279 months), the average interest rate is 6.71 percent (versus 6.79 percent in 2014), and the average monthly payment is 297.6 manat (332.5 manat).

Some 17,925 mortgage loans worth 729.74 million manat have been delivered up till now through the fund, including 99.9 million manat in 2014, 112.9 million manat in 2013, 74.77 million manat - in 2012, 95.64 million manat - in 2011, 97.08 million manat - in 2010, 76.9 million manat - in 2009, 70.2 million AZN - in 2007 and 5.6 million manat - in 2006.

Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 AZN at a rate of 8 percent with a payback period of 25 years. Terms under the social mortgage are 50,000 AZN at an annual rate of 4 percent with a payback period of 30 years. The initial payment under a social mortgage is 15 percent, whilst a conventional loan is 20 percent.

Conditions of mortgage lending are as follows: Loans must be issued in Azerbaijani AZN and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house.

The volume of mortgage lending must not exceed 80 percent of the market price and the monthly payment must not exceed 70 percent of the debtor's monthly income. It is compulsory to have an agreement on life insurance.

Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs and those making special contributions to sport as well as to the military with at least a three-year service term. Each family having the right to such a mortgage can only use the opportunity

At present, the authorized banks of the Mortgage Fund are 32 banks as of 2015.

Some 21 insurance companies [their total number is 26] and 16 appraisal organizations are the participants of the mortgage market.

Azerbaijan's banking sector

The economic cycles, seasonal factors and the attitude of investors, dictated by a variety of causes, impact on the dynamics of deposits.

Thus, the growth of nominal deposits in Azerbaijani banks as of 2015 is more connected with the exchange rate difference due to the devaluation of the manat, rather than great desire of investors to keep savings in banks.

As of January 1, 2016, the total amount of bank deposits and deposits of physical and legal entities drawn by the credit organizations of Azerbaijan totaled 23.463 billion manat, the CBA's report says.

According to the CBA report, the deposit base of banks increased by 33.3 percent in December, while in annual terms - increased by 51.8 percent.

As of 2015, the deposits in national currency - manat amounted to 4.236 billion manat, of which 2.233 billion manat - demand deposits, 2.004 billion manat - term deposits.

According to the report, during the period, the deposits in freely convertible currency amounted to 19.227 billion (5.741 billion manat - demand deposits, 13.486 billion manat - term deposits).

Thus, as of January 1, 2016, the deposits in manat hit 18.1 percent, while in foreign currency - 81.9 percent of the total deposit base of banks.

For comparison, as of early 2015, some 50.1 percent was formed through manat deposits, while 49.9 percent of the banks' deposit base was formed through the deposits in foreign currency.

As of 2014, the deposits in national currency amounted to 7.743 billion manat, of which 2.734 billion manat - demand deposits, 5.009 billion manat - term deposits. The deposits in freely convertible currency amounted to 7.710 billion manat, of which 1.799 billion manat - demand deposits, 5.911 billion manat - term deposits.

The volume of the physical entities' deposits in Azerbaijani banks amounted to 9.474 billion manat. The vast majority accounted for the foreign currency deposits (85 percent or 8.054 billion manat.

The volume of deposits in foreign currency increased by 2.9 times (as of January 1, 2015, this figure was 2.604 billion manat) compared to November 2014 and by 48.6 percent (5.420 billion manat) compared to November 2015.

The population's bank deposits increased by 33.6 percent compared to the previous month and by 31.8 percent by early 2015.

As of 2015, the volume of the Azerbaijani financial organizations' deposits amounted to 6.359 billion manat compared to 4.298 billion manat as of 2014. The volume of the non-financial organizations' deposits hit 7.630 billion manat compared to 3.967 billion manat in 2014.

The total volume of the legal entities' deposits in the country's banks amounted to 13.989 billion manat or by 69.15 percent more than in 2014 - 8.265 billion manat.

The population's deposits, attracted to Azerbaijan's banking system from the country's districts (except for Baku), totaled 606.7 million manat in 2015, or 6.4 percent of the total bank deposits.

The volume of deposits in Baku was 8.86 billion manat, while some 7.65 billion manat accounted for the deposits in the national currency.

The foreign currency savings of the residents of Azerbaijani regions amounted to 393.32 million manat (64.8 percent of total deposits in the regions) in the reporting period.

A gradual increase in the volume of bank deposits in freely convertible currency has been observed in the regions since early 2015. Thus, the share of the population's bank deposits in freely convertible currency in Azerbaijani regions amounted to 24.2 percent in early 2015, while 49 percent in July. The share of bank deposits decreased by 4.6 percentage points in August. But it increased again by 5.9 percentage points in September and reduced by 0.97 percentage points in October.

As of December 2015, the average interest rate throughout the country and Baku hit 7.4 percent.

Thus, the Absheron economic region is still the leader on such indices as attracting the population's deposits by the banks (198.51 million manat, average rate - 8.2 percent per annum).

During this period, the volume of deposits in the Aran economic region - 85.4 million manat at a rate of 6.3 percent, Mountainous Shirvan - 14.62 million manat at a rate of 7.2 percent, Ganja-Gazakh - 145.76 million manat at a rate 7.8 percent, Guba-Khachmaz - 40.79 million manat at a rate of 6.7 percent, Lankaran - 41.78 million manat - the rate of 7.6 percent, Sheki-Zagatala - 36.8 million manat - the rate of 6.4 percent, Upper Karabakh - 17.5 million manat - 5.7 percent, Kalbajar-Lachin - 2.38 million manat - 5.9 percent, Nakhchivan - 23 million manat - the average rate of 4.9 percent.

The Azerbaijani banks decreased interest rates on deposits both in national and foreign currency in December 2015, the report said.

The average rate on deposits in manat made up 8.33 percent as of Jan. 1, 2016 compared to 8.08 percent as of Dec. 1, 2015 and 8.86 percent as of early January 2015.

The average rate on deposits in foreign currency amounted to 8.06 percent versus 8.25 percent as of Dec. 1, 9.24 percent as of Jan. 1, 2015.

The average rate on deposits of legal entities in manat made up 5.82 percent as of January 1, 2016 versus 5.8 percent as of December 1, 5.51 percent as of January 1, 2015.

The funds on the accounts denominated in the freely convertible currency brought legal entities 4.81 percent, 4.97 percent and six percent respectively.

As of Jan. 1, 2016, the average interest rate on deposits of physical entities in manat made up 9.14 percent, 9.33 percent as of December 1, 2015, 9.45 percent as of January 1, 2015.

The interest rates on deposits of physical entities in foreign currency are as follows: as of January 1, 2016 - 8.83 percent, nine percent and 9.78 percent accordingly.

Financial activity of banks

Some 11 banks are being liquidated in Azerbaijan. According to the CBA's report, as of 2015, the total number of banks which are being liquidated reached seven. In particular, Poctbank and Atlantbank are being liquidated. Their licenses were revoked in 2008. Debutbank (2010), Birlik Bank (2011), Royal Bank (2012), Evrobank and Azerbaijan Credit Bank (licenses were revoked in 2015) are also among these banks.

Moreover, CBA has revoked the licenses of seven banks - Bank of Azerbaijan, Gandja Bank, United Credit Bank, NBCBank, Atra Bank, Caucasus Development Bank and Texnika Bank since early 2016. Later, however, CBA restored NBCBank's license in connection with the plans about merging. Caucasus Development Bank and Atra Bank have similar plans. Currently, they are negotiating with the banks operating on the market.

Thus, only 11 banks are being liquidated.

In total, there are currently 36 banks on the Azerbaijani banking market, including two state banks [International Bank of Azerbaijan and AzerTurkBank].

Some 41 banks with 750 branches and 164 offices operated in the country in 2015. According to the report, the number of banks with foreign capital was 21 in 2015. Nine structures of local banks, including five subsidiaries [Caucasus Development Bank in Georgia, International Bank of Azerbaijan - in Georgia and Russia, PASHA Bank in Georgia and Turkey] operated beyond the country in 2015.

According to the CBA's report, the banking sector's assets amounted to 35 billion manat in 2015, increasing by 39 percent during a year.

Payment card market

The total turnover on payment cards via ATMs and POS-terminals in December 2015 amounted to 1.250 billion manat (0.4 percent more than in the same period of 2014) and the total number of transactions - 7.8 million or by 2.8 percent less during the year, according to the CBA report.

The number of transactions on debit cards equaled 6.60 billion units totaling 1.05 billion manat during the reporting period.

Of the total number of transactions, 4.2 million transactions amounting to 9.24 billion manat were implemented on debit cards via ATMs within the country, and around 378,000 transactions amounting to 79 million manat via POS-terminals.

As much as 1.20 million transactions worth 193 million manat were made on credit cards during this period.

Of the total number of transactions on credit cards, 359,000 transactions worth 93 million manat were implemented via ATMs and there were 356,000 transactions worth of 48 million manat via POS-terminals.

The number of payment cards in Azerbaijan decreased by 5.2 percent in December 2015 and hit 5.7 million units compared to the same period of 2014.

Of the total number of cards, 4.6 million units were debit cards, in particular, 2.4 million - social cards, 1.46 million - salary cards, 732,000 - other cards. The number of credit cards was 1.01 million.

As of January 1, 2015, as many as 2,694 ATMs operated in the country of which 1,502 are located in Baku and 1,192 in other cities and regions of the country. Their total number increased by 86 units or 3.2 percent during a year compared to December 2014.

The number of POS-terminals amounted to 80,301 units of which 47,985 are installed in Baku and 31,357 units in other cities and regions as of late December 2015.

The number of POS-terminals has increased by 7,288 units or 9.98 percent during a year.

Stock market

The total turnover of exchange transactions on all instruments on Baku Stock Exchange hit 8.46 billion manat in 2015 or by 35.57 percent less than in the same period of 2014.

The volume of state securities market totaled 20.79 million manat (decreased by 29.62 times), while the turnover of corporate securities market equaled 2.24 billion manat (decreased by 3.58 times) during the reporting period.

The volume of derivatives market hit 6.19 billion manat (increased by 38.17 percent).

The Baku Stock Exchange started to trade derivatives on a commodity basis on July 21, 2014.

The margin trading allows investors to buy and sell securities and financial instruments purchased from a broker under special conditions due to a temporary trading limit.

Comparative table on the results of trades on the state and corporate sectors at BSE:

Market segments

Jan.-Dec. 2015

Jan.-Dec. 2014

Volume of transactions (AZN)

Number of deals

Volume of transactions (AZN)

Number of deals

I. State securities market

20 793 458,90

17

615 773 709,29

124

State bonds of finance ministry

20 793 458,90

17

107 908 649,11

48

Initial placement

0

0

80 311 321,02

31

secondary market

20 793 458,90

17

27 597 328,09

17

Notes (Central Bank)

0

0

507 865 060,18

76

Initial placement

0

0

158 054 771,87

47

secondary market

0

0

349 810 288,31

29

II. Market of shares

279 448 960,97

3 755

1 029 085 816,64

5 457

Initial placement

268 703 390,35

144

1 009 478 762,63

655

secondary market

10 745 570,62

3 641

19 607 054,01

4 802

III. Debt market

1 837 125 925,98

668

3 459 700 712,33

491

Mortgage bonds (Initial placement)

45 382 918

11

40 240 000

20

Mortgage bonds (secondary market)

1 502 415 877,29

196

1 079 553 451,68

199

Other corporate bonds

(initial placement)

25 620 244,66

82

2 136 201 810,64

80

Other corporate bonds

(secondary market)

263 706 886,03

379

203 705 450

192

- including market makers

227 864 964,7

272

87 771 481,09

106

IV. Repo transactions

123 762 620,25

113

3 540 809 139,74

297

Repo transactions of the Central Bank

32 217 600,76

30

1 803 653 833,93

137

Other repo transactions

91 545 019,49

83

1 737 155 305,81

160

V. Derivatives market

6 194 376 765,84

48 814

4 480 338 367,82

30 328

Currency

6 095 486 561,34

43 445

3 697 788 960,38

27 318

goods

98 890 204,50

5 369

782 549 407,44

3 010

Total

8 455 507 731,94

53 367

13 125 707 745,81

36 697

According to the report of the State Securities Committee as of 2015, the volume of trading transactions with derivative securities amounted to 6.19 billion manat in Azerbaijan in 2015, which is 41 percent more than in 2014.

For comparison: the volume of transactions on the market of derivative securities amounted to 4.38 billion manat in 2014.

Despite the positive trends in transactions with derivative securities, the state securities market decreased as a result of changes in monetary and fiscal policy.

The total volume of transactions amounted to 10.5 billion manat in 2015 which is 21 percent less than in 2014. But the number of transactions increased by 17,149 units, or 47 percent.

Comparable figures on Securities Market

Kinds of securities

2015

2014

Difference in the sum (percent)

Number of deals

Sum of transactions (thousand manat)

Number of deals

Sum of transactions (thousand manat)

Corporate securities

4 855

4 186 121,93

6 534

4 737 505,9

-12%

Primary market

215

1 913 926,45

770

3 312 683,94

-42%

Secondary market

4 640

2 272 195,48

5 764

1 424 821,96

59%

State securities

130

144 556,08

421

4 156 582,85

-97%

Primary market

-

-

78

238 366,09

-

Secondary market

130

144 556,08

343

3 918 216,76

-96%

Derivative securities

48 814

6 194 376,77

30 328

4 378 801,56

41%

Secondary market

48 814

6 194 376 77

30 328

4 378 801,56

41%

Securities market (total)

53 799

10 525 054,8

37 283

13 272 890,3

-21%

Primary market

215

1 913 926,45

848

3 551 050,03

-46%

Secondary market

53 584

8 611 128,33

36 435

9 721 840,28

-11%

Some 2,000 mortgage securities were registered in the reporting period through the Azerbaijan Mortgage Fund in connection with the issuance of mortgage loans. Some 2,393 mortgage securities were additionally registered.

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Chronicles of Victory: Azerbaijani president gives interview to Le Figaro newspaper on October 24, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 24, 2020
Buy/sell operations at Iran Mercantile Exchange growing
Iran unveils details of its trade turnover via Astara customs
Putin invites Israeli prime minister to visit St. Petersburg
Iran's Energy Exchange announces products to be on sale on October 24
Turkmenistan launches production of new types of paving slabs
Azerbaijani banks ramp up business lending since early 2021
Georgia and Ukraine talk cooperation within European integration
Iran reveals COVID-19 data for October 23
UK records another 44,985 new coronavirus cases
Tactical-Special Exercises of Azerbaijani Special Forces end (VIDEO)
First Vice-President Mehriban Aliyeva shares photos from visit to Zangilan with President Ilham Aliyev (PHOTO)
Azerbaijani, Iranian FMs talk recent relations developments
Members of Nizami Ganjavi International Center join call towards cop26
Arayik Harutyunyan's visit to Russia is solely private - embassy of Azerbaijan
NATO not ready for equal dialogue with Moscow - Russian defence chief
Saudi-led coalition says destroys Houthi vessels, bomb-laden boats site
Kazakhstan updates forecast for completion of grain harvesting
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
EIB to help reduce COVID-19 effects on Georgian SMEs
Moscow comments on reports about holding Russia-Armenia-Azerbaijan summit on Nov.2021
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,315 more COVID-19 cases, 981 recoveries
First Vice-President Mehriban Aliyeva shared footage from Zangilan visit on her Instagram page (VIDEO)
Turkmenistan to participate in EXPO-2025
Georgia and Ukraine sign protocol on economic cooperation
Weekly review of key events in Azerbaijan's ICT sector
Azerbaijan's liberated lands to contribute to expansion of TRACECA corridor - minister
Weekly review of main events in Azerbaijan's transport sector
Saudi Arabia targets net zero emissions by 2060
Russia registers an all-time high of 37,678 coronavirus cases in past day
Uzbekistan eyes foreign technology for better local polymer production
Turkmen delegation to pay working visit to Iran
Azerbaijan records growth in loan portfolio of local banks in 9M2021
Turkmenistan’s Turkmenbashi refinery eyes producing hydrogen
Azerbaijan, Singapore to co-op in construction of geostationary satellites
IRICA shares data on Iran's trade turnover with SCO member states
Iran sees increase in exports of non-oil products from Hormozgan Province
Weekly review of Azerbaijani precious metals market
Kazakhstan unveils trade indicators with its TOP-3 EU partners
Turkmenistan approves new procedure for allocating investments from Stabilization Fund
Azerbaijani MoD observes exercises in liberated Lachin district (VIDEO)
Russian Health Ministry greenlights joint COVID-19 and flu vaccination
Central Bank discloses volume of loans issued to Azerbaijan's districts
Georgia records surge in tourist visits from Uzbekistan
Tourist inflow from Kazakhstan to Georgia soars
Iran boosts exports through customs of Zanjan Province
Azerbaijan notes decrease in banking sector' profit
Azerbaijan sees rise in mortgage lending
Iranian currency rates for October 23
Weekly review of Azerbaijani currency market
Georgia releases data on COVID-19 cases for October 23
New customs post in Azerbaijan to speed up cargo movement along North-South corridor (PHOTO)
Azerbaijan, Armenia to sign new documents in Moscow
Azerbaijani oil prices increase
Georgia sees decrease in tourist inflow from Azerbaijan
Turkmen company to purchase material, technical resources via tender
Kazakh energy company opens tender to buy metal corners
Kazakh oil company opens tender to buy spares
Kazakh KazMunayTeniz opens tender for Caterpillar equipment maintenance
Azerbaijan's Central Bank unveils data on currency exchange operations for Jan. through Sept. 2021
Azerbaijani fund presents concept for restoration of liberated territories
EDB purchases bonds of Kazakh KEGOC JSC
US corporate workers to start returning to offices next month
Iran changes pricing of petrochemical products at its mercantile exchange
Iran's foreign exchange needs trigger to expand exports
Surge of energy prices puts Europeans in stalemate (VIDEO)
Chinese company opens massive eco-friendly mine in Serbia
Kazakhstan’s daily COVID-19 case count stands at 1,732
Georgian honey exports skyrocket, following COVID-ravaged year
Iranian envoy, head of Georgia's State Security Service meet
Turkey announces commissioning date for logistics center in Sivas (Exclusive)
US military eliminates one of Al-Qaeda leaders in northwest Syria
Mutation of Delta variant may be more transmissible: UK health agency
Biden, Macron discuss cooperation, to meet in Rome late October
India, UK working on free trade agreement: Harsh Vardhan Shringla at India Global Forum
Turkey reports 28,192 daily COVID-19 cases
G7 countries reach breakthrough on digital trade and data
India perhaps only G20 country to fulfil...: India ahead of COP26 climate summit
U.N. plane aborts landing as air strike hits Ethiopia's Tigray
Relations with India stronger than ever, says Maldives Defence Minister
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