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Heydar Babayev: Absence of interest to securities in Azerbaijan is directly connected with their low rate of profitability

28 April 2005 [18:32] - TODAY.AZ
Absence of interest to securities is directly connected with their low rate of profitability.
The agency Trend reports, the head of the State committee on securities Heydar Babayev informed to journalists, 27 April. He said, if rate of profitability on securities is 4,6%, then investment of finances to securities is not profitable, as rate of refinancing of National bank of Azerbaijan is 7%. "In such case it is more profitable to preserve finances in bank deposits", H.Babayev indicated.

He mentioned, particularly, this accounts for failure of yesterday lot on securities, when volume of applications was in total 8 bln manats, at that, volume of T-bills, put up at the auction, was 100 bln manats. H.Babayev mentioned, in his opinion, volume of T-bills in amount of 500 bln manats would be ideal for Azerbaijan.

H. Babayev said, function of securities on absorption of money supplies is not realized in such conditions, which is to hinder development of inflation processes. H.Babayev also indicated, the growth of market of securities is about 1,2 times, however it grows only at the cost of trade by securities. "For revival of market, the so-called blue fish is required, H.Babayev said.

He said, sometimes absence of some company in the secondary market of securities is connected with its unwillingness due to lack of transparency.
URL: http://www.today.az/news/business/19164.html

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