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Azerbaijan gets 42% decline in Q1 government securities market

26 April 2013 13:44 (UTC +04:00)

Baku. Nijat Mustafayev – APA-Economics. The Central Bank of Azerbaijan conducted soft, stimulating monetary policy in the low inflation condition and the Ministry of Finance did not realized government bond issuance in January-March, 2013. This caused government securities market to make AZN 1.5 bln by falling 42%, said the Activity Report of State Committee for Securities on outcomes of the first quarter of 2013.

The report says CB note market dropped 45% to AZN 163.8 mln: “Though, proposal of CB notes declined, the Secondary market of notes increased. So, CB notes’ secondary market rose 10.8 times to AZN 43.9 mln. Reduction of CB notes placemen was reflected in the dynamics of repo operations conducted via this instrument. Repo/ reverse-repo operations conducted via notes slipped 42%, repo market – 41%”.

At the same time, the Ministry of Finance did not realize government securities issuance. But, reviving of interbanks short-term loan market caused increase of repo/reverse-repo operations held via government bonds by 22.4 times to AZN 11.2 mln

Government securities market
Type of securities	January-March, 2013		January-March, 2012		Difference on sum,%
Type of securities	Number of deals	Sum (manat)	Number of deals	Sum (manat)	Difference on sum,%
Government Securities	174	1,525,926,134	409	2,625,658,780	-42%
Government bonds	0	0	1	663,316	-
Government bonds (primary market)	0	0	0	0	-
Government bonds (secondary market)	0	0	1	663,316	-
CB notes	46	163,826,647	78	298,644,442	-45%
CB notes (primary market)	42	119,871,035	76	294,564,796	-59%
CB notes (secondary market)	4	43,955,612	2	4,079,646	10.8 times
Repo/reverse-repo	128	1,362,099,487	330	2,326,351,022	-41%
Government bonds (repo/reverse-repo)	8	11,189,639	1	500,058	22.4 times
CB notes (repo/reverse-repo)	120	1,350,909,848	329	2,325,850,965	-42%