Central Bank of Azerbaijan defines new work parameters in guaranteed money market

According to the decision of the board of the Central Bank of Azerbaijan (CBA) dated Dec.16, 2010, new work parameters are introduced in the guaranteed money market (GMM) from Jan.10, 2011, functioning within the framework of stock exchange e-trading system, Baku Interbank Stock Exchange said today.

As a result, the amount of maximal loan funds attracted by one participant increased from 1 million to 2 million manat. Term of issuing loan has increased in 3 times and its maximum period hits 90 days.

Oct. 21, 2009 the CBA, BBVB and several banks - market makers of the money market (JSC "DemirBank", JSC AGBank, SDS Nikoil, JSC "Standard Bank", JSC "Pashabank", JSC "Unibank" and JSC "Bank of Baku") signed a collective agreement, which is a legal basis for a new segment of the money market. Then «TuranBank», JSC "AFB Bank" and JSC "Rabitabank" joined the project.

At present, the number of GMM participants is 10 banks.

Guaranteed Money Market (GMM) is a segment of the interbank loan market, where fulfillment of the obligations on credit transactions is guaranteed by the Central Bank. Trading limits to banks are set by the Central Bank and agreed between all parties. Decisions about changes in trading limits are also considered and adopted by the Central Bank.


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