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Securities Market Transactions Below 1% Of GDP
A seminar was held in Baku on Thursday as part of the “Development of Securities Market in Azerbaijan” project funded by the Council of Europe.
The British ambassador to Azerbaijan Lawrence Bristow said that that foundation has been laid in the country for developing the securities market.
Chairman of the State Committee on Securities Heydar Babayev said the securities market has just been formed in the country. He said that legal framework has been created and pointed out the newly-established infrastructure, including the Baku Stock Exchange and activities of brokers.
Shortage of short-term state loans was pointed out as one of the main problems affecting development of the securities market. A new program considers issuing different loans as well as Eurobonds in the near future. It was noted that the loans should be issued between 15-30 million USD for 4-5 year period to ensure effectiveness.
Representatives of the working group on the project pointed out that the operations in the stock market make up less than 1% of the Gross Domestic Product, as compared to 5% or 6% in Russia and Kazakhstan. However, in the coming decade the country's oil revenues and increasing investments in the non-sector will revitalize the securities market. As a result of gradual strengthening of the private sector in the country, $100-220 million will be invested in the securities market in the next three years.
Source: Assa Irada, ANS
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