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Review of monetary sector in Azerbaijan (January-March 2016

Analysis Materials 13 May 2016 14:34

The reserves of the Central Bank of Azerbaijan (CBA) increased by $39.5 million (0.98 percent) in March 2016 compared to February and neared $4.066 billion.

According to the CBA statistics data, the CBA's foreign exchange reserves decreased by $5.406 billion (2.3 times) compared to March 2015.

The CBA's currency reserves have started to decrease since July 2014.

At the very beginning, this process was going slowly (at around $20-$50 million), but starting since December 2014, the volume of currency reserves decreased sharply as the demand for the dollar supply increased in the country.

Meanwhile, it is connected with the intervention carried out by the CBA on the currency market in order to keep the exchange rate of manat against the US dollar at a stable level.

Some events of great importance for the country's financial market occurred on the monetary market in March:

- CBA increased the discount rate from five to seven percent on March 4, 2016.

The upper limit of the interest rate corridor for liquidity operations was set at 10 percent (compared to 17 percent), while the lower limit remained unchanged at 2 percent, the CBA said.

"Meanwhile, it was decided to extend the duration of the operations for issuing and attracting liquidity at interest rates at the levels of upper and lower limit from one to seven days," said the message.

To manage the short-term liquidity, banks will be able to use 1-7-day repo (sale and repurchase agreement), and reverse repo operations which are the CBA's framework tools.

- Azerbaijan's parliament passed a package of amendments to the country's laws at its plenary session in March, which stipulates establishing the Financial Market Supervisory Chamber.

In particular, amendments were made to Azerbaijan's Tax Code, Civil Code, Code of Administrative Offences, Law on Central Bank, Law on Banks, Law on Postal Service, Law on Securities Market, Law on Investment Funds, Law on Insurance Activity, Law on Lotteries, Law on Non-Bank Credit Organizations, and others.

Azerbaijani President Ilham Aliyev signed a decree on amendments to the Law "On the Central Bank of Azerbaijan". According to the amendments, the CBA's status was changed from "public body" to the "public entity". Moreover, the CBA was deprived of many powers.

- Azerbaijan's Financial Market Supervisory Chamber is exempt from taxes. This is envisaged by the charter of Azerbaijan's Financial Market Supervisory Chamber, approved by Azerbaijani President Ilham Aliyev. According to the charter, Azerbaijan's Financial Market Supervisory Chamber can not engage in business activity. The funds, received as a result of the work of Azerbaijan's Financial Market Supervisory Chamber, will be used to ensure its activity.

- Azerbaijani President Ilham Aliyev signed a decree on the law "On the full deposit insurance" in March. According to the law "On the full deposit insurance", the population's deposits with the annual interest rate not exceeding the maximum level set by the Board of Trustees of the Azerbaijan Deposit Insurance Fund (ADIF), will be insured for three years, regardless of the amount of the deposit in the banks-members of the Fund.

- Dividends on bank deposits of the population have been exempt from taxation for three years in Azerbaijan since February 1, 2016. The corresponding order on the law "On Amendments to the Tax Code" was signed by President Aliyev. The amendments also envisage exemption of dividends paid by the issuer on investment securities, discounts and interest income from taxation.

- The upper limit of the interest rate on insured deposits in foreign currency has been decreased from 12 percent to three percent since March 1, 2016. The corresponding decision, agreed with the CBA, has been taken by the Board of Trustees of the fund at an extraordinary meeting.

The upper limit of the annual interest rate on insured deposits in the national currency remained unchanged at 12 percent.

- The CBA increased the reserve requirements on foreign currency deposits. According to the changes in the "Reserve requirements, procedure for their calculation and storage", the reserve ratio on foreign currency deposits increased from 0.5 percent to one percent. The reserve requirements on foreign currency deposits and securities remained at the same level - 0.5 percent. The calculation guidelines with international financial institutions and liabilities to the financial sector, which is a non-resident, have been reduced from 0.5 percent to zero. The amendments entered into force on May 1, 2016.

Currency market and manat rate

The consecutive measures have been recently carried out to ensure the continued macroeconomic stability, including the stimulation of more widespread use of the national currency as a means of accumulation, in the direction of the development of the monetary and financial markets. The placement of state securities with a high yield, determination of the maximum limit of the annual interest rate on insured deposits in the national currency at a higher level are aimed at strengthening confidence in the manat.

The national currency rate in March varied depending on the level of import on the eve of the holidays. Of course, the manat official rate decreases in case of an increase in import because the demand for dollars and euros increases. But in case of a decrease in the volume of import, the manat official exchange rate is being readjusted. According to the floating exchange rate policy, the manat official rate must be set.

The transition to the floating rate of the national currency in Azerbaijan has justified itself, head of the CBA Elman Rustamov said.

"Given the current conditions, considering the situation in the global economy, this is the right decision, and it corresponds to strategic interests of Azerbaijan," he said.

Rustamov went on to add that the Azerbaijani manat will remain in 'floating' mode until its stability is ensured.

The CBA's task as the regulator is to prevent strong manat exchange rate fluctuations, rather than to provide the banks with the currency. The revised state budget-2016 has been already adopted. It envisages the transfer program, which is the main source providing the market with currency.

The CBA conducts the currency sale auctions three times a week - on Monday, Wednesday and Friday. Along with the CBA's currency interventions, the State Oil Fund of the Azerbaijan Republic (SOFAZ) sells dollars to the banks.

So, both the highest and lowest dollar exchange rates for the first quarter of 2016 were observed in March. The monthly maximum rate - 1.6456 USD/AZN was fixed March 12, while the monthly minimum rate - 1.5421 USD/AZN was fixed March 31.

As for the euro exchange rate, this currency continued increasing in March. The monthly maximum rate - 1.8378 EUR / AZN was fixed on March 11, while the monthly minimum rate - 1.7071 EUR / AZN was fixed March 1. During the first quarter of 2016 the lowest euro exchange rate - 1.6796 EUR / AZN was fixed January 6.

Azerbaijani monetary market

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) hit 8.943 billion manat in March 2016 increasing by 2.9 percent for a month and decreasing by 28.4 percent for the year, the CBA's report said.

The amount of cash money supply (M0) decreased by 32 percent for a year from 7.397 billion manat to 5.035 billion manat. M0 increased by 1.5 percent compared to the previous month.

As of March 2016, Broad Money Supply (M3) totaled 20.635 billion manat or 5.8 percent more compared to March 2015 and by 5.3 percent more than in the previous month.

The decline in broad money supply (M3) in Azerbaijan is mainly connected with a decrease in net foreign assets.

The transaction money (M1) decreased by 24.1 percent during a year and increased by 3.8 percent by hitting 7.055 billion manat compared to February.

Parameters of monetary market, in billion manat:

Volume, March 2016

Money mass in extensive understating (М3)

20635,1

Money mass on manat (М2)

8943,0

Cash in manat (М0)

5034,9

Non-cash in manat

3908,1

The bank reserves amounted to 1.78 billion manat in Azerbaijan as of April 1, 2016 or by two times more than in March 2015 (859.4 million manat), said the CBA report as of March 2016.

The expanded monetary base in Azerbaijan totaled 7.4 billion manat as of April 1, 2016, according to the report.

In annual terms, the monetary base in Azerbaijan decreased by 17.04 percent. For comparison, as of March 2015, this figure was 8.92 billion manat. The monetary base reduced by 2.1 percent in Azerbaijan compared to early 2016 (7.56 billion manat).

As of April 1, 2016, the monetary base in manat amounted to 6.54 billion manat versus 8.34 billion manat as of April 1, 2015.

In the mentioned period, the volume of money in circulation amounted to 5.61 billion manat, while this figure was 8.06 billion manat as of April 1, 2015.

The ratio of the mass of cash in circulation to the monetary base was 75.8 percent as of April 1, 2016, decreasing by 14.5 percent compared to the same index as of April 1, 2015.

Azerbaijan's loan market

The credit portfolio of Azerbaijani banks slightly decreased by 3.15 percent up to 19.69 billion manat in March.

Azerbaijani banks decreased lending to the economy by 4.6 percent compared to March 2015.

The banks issued over a half of loans worth 10.03 billion manat (50.9 percent) in the national currency, while the rest part - 9.66 billion manat (49.1 percent) in foreign currency.

This ratio hit 27 and 73 percent in early 2015. But the share of foreign currency loans began increasing, reaching 49.3 percent as of the year after the devaluation of the manat in February.

The volume of overdue bank loans reached 1.326 billion manat in Azerbaijan in March 2016, decreasing by 0.23 percent for the month.

Their share in the loan portfolio of banks was 6.75 percent as of March compared to 6.5 percent as of late February.

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

As of April 1, 2016, the volume of short-term loans amounted to 4.48 billion manat (including overdue loans worth 456.8 million manat) decreasing by 2.4 percent for the year.

The volume of long term loans decreased by 5.3 percent up to 16.05 billion manat for the year (including 869.8 million manat of overdue loans).

According to the CBA, the credit portfolio of the state banks in the country hit 6.8 billion manat with the specific weight of 34.5 percent, while private banks issued loans worth around 12.29 billion manat with a specific weight of 62.5 percent.

The remaining 3 percent fell to the share of non-bank credit organizations which issued 595.5 million manat, according to the CBA.

Azerbaijani banks decreased the consumer lending volume to 7.58 billion manat in March 2016 or by 2.1 percent less than in January and 8.6 percent in March 2015.

A decrease in consumer lending in Azerbaijan in mid. 2015 began after the first devaluation of the manat rate [the dollar rate increased by almost 34 percent February 21, 2015].

The consumer lending decreased by 1.4 percent in March 2015. The banks reduced the consumer lending volume by 1.2 percent in April, 1.88 percent in May, 1.97 percent in June and 1.5 percent in July.

The consumer lending decreased by 0.4 percent in November 2015 (compared to October).

However, the largest part of the total loan portfolio of banks - 38.5 percent (as of March) accounts for the consumer loans.

The construction and real estate sector (15.5 percent or 3.05 billion manat) ranked second on the share in the total loan portfolio of banks. The trade and services (14.2 percent or 2.8 billion manat) ranked third.

Around 7 percent was directed to the industry and production in March. In nominal terms it amounts to 1.36 billion manat.

The share of transport and communication hit 7.7 percent (1.51 billion manat), agriculture and processing reached 2.2 percent (432.9 million manat), energy, chemistry, and natural resources - 1.5 percent (298.2 million manat).

The loans given to the population in Azerbaijan's districts totaled 3.1 billion manat as of March 2016, or 15.8 percent of the banks' total loan portfolio and 6.1 percent less than in the same period of 2015, the CBA says.

The loans worth 16.58 billion manat were delivered in Baku. Here the loans in national currency (manat) amounted to 7.93 billion manat.

For comparison, Baku granted loans amounting to 17.2 billion manat in March 2015. Some 9.7 billion manat accounted for the loans in national currency.

The average interest rate on loans throughout the country was 12.4 percent in March 2016, while in Baku this index stood at 10.9 percent.

The lending volume in the Absheron economic district totaled 632.46 million manat at an average rate of 17.2 percent.

In other economic districts the lending index was as follows: Aran - 816.84 million manat at a rate of 22.1 percent, Mountainous Shirvan - 116.88 million manat at a rate of 21.5 percent, Ganja-Gazakh - 655.03 million manat at a rate of 19.9 percent, Guba-Khachmaz - 224.45 million manat at a rate of 21.0 percent, Lankaran - 278.44 million manat at a rate of 22.4 percent, Shaki-Zagatala - 206.70 million manat at a rate of 21.3 percent, the Upper Karabakh - 49.65 million manat at a rate of 19 percent, Kalbajar-Lachin - 0.88 million manat at a rate of 17 percent, Nakhchivan - 120.82 million manat at a rate of 13.6 percent.

Azerbaijani banks reduced the average interest rate on loans in national and foreign currency in March 2016.

The average rate on bank lending to the Azerbaijani economy in national currency amounted to 12.89 percent in March compared to 13.17 percent in February.

The average interest rate on loans hit 14.02 percent as of March 2015.

The average rate on bank lending in freely convertible currency made up 11.64 percent in March 2016 compared to 12.34 percent in the previous month and 12.9 percent as of April 1, 2015.

The average rate on bank lending to the legal entities in national currency amounted to 8.84 percent compared to 9.25 percent in January and 9.75 percent as of March 2015.

The average rate on bank lending to the corporate clients in freely convertible currency amounted to 8.31 percent in March compared to 8.86 percent in February and 8.84 percent in March 2015.

As of March 2016, the average rate on bank lending to physical entities in national currency amounted to 17 percent compared to 17.24 percent in February and 18.39 percent as of April 1, 2015.

The average rate on bank loans to the individual customers in freely convertible currency was 18.91 percent compared to 20.19 percent and 21.42 percent accordingly.

Mortgage lending

A number of banks increased the amount of the subsistence minimum for each family member to obtain a mortgage loan in Azerbaijan in March.

According to the report of the Azerbaijan Mortgage Fund (AMF), this action is connected with the approval of the Law "On subsistence minimum for 2016". According to the report, the subsistence minimum is set at 136 manat in Azerbaijan for 2016.

According to the AMF portal, 14 out of 27 banks issuing mortgages through the AMF increased the amount of the subsistence minimum from 131 manat to 136 manat, and Unibank - up to 200 manat.

Moreover, some banks increased the amount of the initial fee at a preferential mortgage. Thus, Muganbank increased the amount of initial fee from 15 to 40 percent, and the International Bank of Azerbaijan - from 15 to 30 percent.

Bank

Subsistence minimum (amount per each family member must not be less than 136 manat)

Initial fee on standard mortgage (%)

Initial fee on preferential mortgage (%)

Bank Respublika

180

50

50

PASHA Bank

180

40

20

Muganbank

140

40

40

Express Bank

150

40

40

Bank Standard

175

40

30

International Bank of Azerbaijan

175

40

30

AtaBank

140

40

40

Bank of Baku

180

30

15

Azer-Turk Bank

150

30

25

Yapi Kredi Bank

136

30

30

XalqBank

136

30

30

UniBank

200

30

30

Turanbank

136

30

30

Nikoylbank

136

30

15

Amrah Bank

140

30

15

AGBank

136

30

30

Rabitabank

136

20

15

Caspian Development Bank

136

20

15

Bank Silk Way

140

20

15

Bank BTB

136

20

15

Zaminbank

136

20

15

KredoBank

136

20

15

Kapital Bank

136

20

15

Demirbank

136

20

15

Bank VTB (Azerbaijan)

136

20

15

Bank Avrasiya

136

20

15

AFB Bank

136

20

15

Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 manat at a rate of 8 percent with a payback period of 25 years. Terms under the social mortgage are 50,000 manat 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 manat 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.

Zaminbank headed Azerbaijani banks' ranking on mortgage lending.

According to the AMF report, as of March 31, 2016, the number of active bank loans reached 1,590. As of 2015, AGBank with 1,432 active loans was the leader in mortgage lending in Azerbaijan. During the first quarter of 2016, it concluded only seven mortgage agreements and ranked second.

Xalq Bank ranks third (1,270 contracts). As of 2015, it ranked second with 1,262 active mortgage agreements.

Comparative table on the number of active loan agreements:

Banks

first quarter of 2016

2015

Bank position (first quarter of 2016)

Bank position (2015)

Zaminbank

1 590

944

1

8

AGBank

1 439

1 432

2

1

Xalq Bank

1 270

1 262

3

2

Demirbank

1 254

1 253

4

3

Bank Standard

1 186

1 184

5

4

Muganbank

1 113

1 101

6

5

Unibank

1 091

1 083

7

6

Nikoil Bank

1 077

1 065

8

7

Bank Respublika

796

794

9

9

AFB Bank

694

676

10

10

The AMF's authorized credit organizations have issued 17,993 mortgage loans worth more than 730.6 million manat since 2006.

At present, 27 banks are the authorized banks of the Azerbaijan Mortgage Fund [37 banks are operating in the country]. The participants of the mortgage market are also 20 insurance companies [in total 25] and 16 appraisal organizations.

AMF allocated 17.9 million manat to refinance mortgage loans in the first quarter of 2016, which is 16.2 percent more than in January-March 2015, the AMF's report says.

Almost 37 percent of refinancing or 6.6 million manat accounted for preferential loans. Some 158 mortgage contracts were concluded in January-March.

Some 11 million manat was allocated from the Azerbaijani state budget to finance social mortgage in January-March 2016.

AMF has received 277 million manat from the state budget and 390 million manat - through the placement of securities to issue preferential loans since the beginning of the activity.

According to the report, Baku remains the leader in mortgage loans. As of the end of the first quarter, some 13,073 mortgage contracts were concluded in Baku, followed by Sumgait (1,795 contracts), Khirdalan and Absheron region (1,047 contracts), Ganja (719 contracts) and Nakhchivan (192 agreements). Most of mortgage contracts account for these towns.

The mortgage houses are often bought in Khatai district of Baku. Some 22.7 percent of the purchased mortgage houses accounts for this district. Yasamal district (15.6 percent) ranks second, while Binagadi district (14 percent) - third, Nasimi district (11.2 percent) - fourth. Less than 10 percent accounts for each of the remaining districts.

As earlier, the mortgage houses are mainly bought by people with a salary beginning from 700 manat and more.

Borrowers are observed in both private and public sectors. There were no major changes in the equity compared to 2015: the private sector - 51.6 percent, the public sector - 48.4 percent.

Most of the preferential mortgage loans (78.4 percent) accounted for the servicemen. Less than 10 percent accounted for each of other categories of borrowers of preferential loans. Thus, 9.4 percent of borrowers are civil servants, 8.3 percent - internally displaced people, 1.9 percent - PhD, 1.7 percent - athletes, 0.3 percent - the martyrs' families.

According to the AMF report, a mortgage agreement is mainly formalized by people from 18 years old to 29 years old (33.7 percent), followed by those aged 30-35 (30.7 percent) and older 36 (30.6 percent). The number of borrowers aged 18-29 and borrowers older 36 in the first quarter of 2016 slightly decreased compared to late 2015. As of late 2015, the borrowers' age distribution was as follows: 19-29 years old (40.9 percent), 30-35 years old (32.4 percent), older 35 (26.7 percent).

The representatives of the banking, insurance sectors and servicemen often use mortgage lending.

According to the report, a mortgage loan is mainly used to purchase housing worth 30,000-60,000 manat (50.4 percent) and 60,000-90,000 manat (40 percent). Least of all accounts for housing worth up to 30,000 manat (2.1 percent) and more than 120,000 manat (2.3 percent). The share of real estate in the amount of 90,000-120,000 manat hits 5.2 percent.

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.

As of April 1, 2016, the total amount of bank deposits of physical and legal entities totaled 23.122 billion manat.

The amount of bank deposits increased by 8.6 percent for the month and 24.8 percent for the year.

The deposits in national currency amounted to 4.401 billion manat in Azerbaijani banks in March 2016, increasing by 5.3 percent for the month.

As of March, the deposits in national currency - manat amounted to 19.3 percent compared to 19.6 percent as of late February, almost 47.4 percent - demand deposits, the rest amount - term deposits.

According to the report, during the period, the deposits in freely convertible currency decreased by 9.4 percent up to 18.720 billion (5.575 billion manat - demand deposits, 13.146 billion manat - term deposits).

Their share in the deposit base of banks increased from 80.4 percent to 81 percent for the month.

The foreign currency deposits began increasing after the devaluation in February 2015. For comparison: 51.7 percent of the banks' deposit base was formed in January 2015 through the deposits in freely convertible currency. However, as of 2015, this figure reached 81.6 percent.

The volume of the physical entities' deposits in Azerbaijani banks amounted to 7.889 billion manat in March 2016. Some 82.56 percent or 6.377 billion manat accounted for the foreign currency deposits.

The population's bank deposits decreased by 2.4 percent for the month. The deposits increased by 1.3 percent per annum.

The total volume of the legal entities' deposits in the country's banks amounted to 15.233 billion manat or by 41.8 percent more than in March 2015 - 10.737 billion manat.

As of early April 2016, the volume of the financial organizations' deposits hit 6.444 billion manat compared to 6.094 billion manat in March 2015.

The volume of the non-financial organizations' deposits hit 8.788 billion manat compared to 4.643 billion manat in March 2015.

The population's deposits, attracted to Azerbaijan's banking system from the country's districts (except for Baku), totaled 514.98 million manat in March 2016, or 6.53 percent of the total bank deposits.

The volume of deposits in Baku was 7.37 billion manat, while some 1.27 billion manat (17.23 percent) accounted for the deposits in the national currency.

The foreign currency savings of the residents of Azerbaijani regions amounted to 273.5 million manat (53.11 percent of total deposits in the regions) in the reporting period.

As of March 2016, the average interest rate throughout the country hit 6.5 percent and 6.6 percent in Baku.

Thus, the Absheron economic region is still the leader on such indices as attracting the population's deposits by the banks (160.1 million manat, average rate - 7.2 percent per annum).

During this period, the volume of deposits in the Aran economic region - 84.9 million manat at a rate of 5.2 percent, Mountainous Shirvan - 12.1 million manat at a rate of 6.7 percent, Ganja-Gazakh - 119.2 million manat at a rate 5.9 percent, Guba-Khachmaz - 34.5 million manat at a rate of 5.8 percent, Lankaran - 37.9 million manat - the rate of 7.2 percent, Sheki-Zagatala - 31.6 million manat - the rate of 4.6 percent, Upper Karabakh - 7.8 million manat - 3.4 percent, Kalbajar-Lachin - 0.03 million manat - 7.5 percent, Nakhchivan - 26.82 million manat - the average rate of 3.5 percent.

The Azerbaijani banks decreased interest rates on deposits both in national and foreign currency in March 2016 compared to the same period of 2015, the report said.

The average rate on deposits in manat made up 7.85 percent as of April 1, 2016 compared to 7.83 percent as of March 1, 8.99 percent as of April 1, 2015.

The average rate on deposits in foreign currency amounted to 6.28 percent versus 6.99 percent as of March 1, 8.75 percent as of April 1, 2015.

The average rate on deposits of legal entities in manat made up 5.43 percent as of April 1, 2016 versus 6 percent as of March 1, 5.85 percent as of April 1, 2015.

The funds on the accounts denominated in the freely convertible currency brought legal entities 3.37 percent, 3.15 percent, 4.31 percent respectively.

As of April 1, 2016, the average interest rate on deposits of physical entities in manat made up 9.19 percent, 2016, 8.96 percent as of March 1, 9.71 percent as of April 1, 2015.

The interest rates on deposits of physical entities in foreign currency are as follows: as of April 1 - 7.75 percent, as of March 1, 2016 - 8.29 percent, as of April 1, 2015 - 9.62 percent.

Financial activity of banks

The Azerbaijani banks' liabilities to the CBA increased by 3.1 times for the year and amounted to 6.463 billion manat as of April 1.

The liabilities increased by 19.45 percent compared to early 2016 and reduced by 0.01 percent in March.

For comparison: as of Jan.-March 2015, the commercial banks' liabilities to the CBA amounted to 2.089 billion manat, while as of early 2016 - 5.41 billion manat, as of late February - 6.464 billion manat.

The liabilities increased because banks drew additional funds from the CBA to support own liquidity after the devaluation of the manat [manat rate decreased by almost 100 percent in 2015].

The volume of foreign liabilities of the CBA remained unchanged since early 2015 and amounted to 700,000 manat.

The CBA's official international reserves decreased by 2.33 times for the year - from $9.472 billion to $4.066 billion.

During the reporting period the CBA's net liabilities to the state have increased by 23.5 percent and amounted to 5.899 billion manat compared to the same period of 2015. For comparison: the volume of liabilities amounted to 4.777 billion manat in the first quarter of 2015.

Payment card market

The total turnover on payment cards via ATMs and POS-terminals in March 2016 amounted to 1.096 billion manat or by 3.6 percent less than in the same period of 2015, the Azerbaijani Central Bank's report as of Jan.-March 2016 says.

The total number of transactions is 7.31 million or by 4.3 percent less for the year, according to the CBA report.

The number of transactions on debit cards equaled 6.45 billion units totaling 954 million manat for the reporting period.

Of the total number of transactions, 4.81 million transactions amounting to 842 million manat were implemented on debit cards via ATMs within the country, and around 373,000 transactions amounting to 63 million manat via POS-terminals.

As much as 869,000 transactions worth 143 million manat were made on credit cards for the period.

Of the total number of transactions on credit cards, 183,000 transactions worth 52 million manat were implemented via ATMs and there were 267,000 transactions worth 38 million manat via POS-terminals.

The number of payment cards in Azerbaijan decreased by 10.1 percent in March and hit 5.43 million units compared to the same period of 2015.

Of the total number of cards, 4.65 million units were debit cards, in particular, 2.44 million - social cards, 1.52 million - salary cards, 693,000 - other cards. The number of credit cards was 780,000.

As of April 1, 2016, as many as 2,560 ATMs operated in the country of which 1,421 are located in Baku and 1,139 in other cities and regions of the country. Their total number decreased by 73 units or 2.8 percent for the year compared to March 2015.

The number of POS-terminals amounted to 75,563 units of which 43,476 are installed in Baku and 32,087 units in other cities and regions as of late March 2016.

The number of POS-terminals has decreased by 2068 units or 2.7 percent for the year.

Stock market

The total turnover of exchange transactions on all instruments on Baku Stock Exchange hit 579.92 million manat in January-March 2016 or by 8.4 times less than in the same period of 2015.

The volume of state securities market totaled 154.46 million manat (a 10.4 times growth), while the turnover of corporate securities market equaled 27.76 billion manat (a 23.2 times decrease) during the reporting period.

The volume of derivatives market hit 397.7 million manat (a 10.5 times decrease).

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.-March 2016

Jan.-March 2015

Volume of transactions (AZN)

Number of deals

Volume of transactions (AZN)

Number of deals

I. State securities market

154 463 807,72

47

14 914 881,15

5

State bonds of finance ministry

154 463 807,72

47

14 914 881,15

5

Initial placement

76 477 659,19

21

0

0

secondary market

77 986 148,53

26

14 914 881,15

5

Notes (Central Bank)

0

0

0

0

Initial placement

0

0

0

0

secondary market

0

0

0

0

II. Market of shares

5 657 405,41

309

49 653 601,01

1080

Initial placement

5 000 000,00

4

48 320 550,00

18

secondary market

657 405,41

305

1 333 051,01

1062

III. Debt market

22 102 590,63

33

595 623 093,77

185

Mortgage bonds (Initial placement)

0

0

3 000 000,00

1

Mortgage bonds (secondary market)

8 852 249,09

3

490 419 969,54

69

Other corporate bonds

(initial placement)

3 878 408,45

16

11 034 136,70

21

Other corporate bonds

(secondary market)

9 371 933,09

14

91 168 987,53

94

- including market makers

0

0

115 786 465,24

55

IV. Repo transactions

0,00

0

46 098 567,05

34

Repo transactions of the Central Bank

0

0

16 073 614,71

15

Other repo transactions

0

0

30 024 952,34

19

V. Derivatives market

397 697 959,41

8416

4 179 427 031,45

20434

- Currency

371 696 306

7 136

4 109 752 139,27

18092

- goods

26 001 654

1 280

69 674 892,18

2342

Total

579 921 763,18

8 805,00

4 885 717 174,43

21 738,00

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Latest